In the first quarter of 2023, Ostchem increased its production of mineral fertilizers by 36.2% to 515,500 tons compared to Q1, 2022.
This is stated in the message of the Group DF, which includes Ostchem, Ukrainian News Agency reports.
In total, in the 1st quarter of 2023, Cherkasy Azot produced 387,400 tons, and Rivneazot produced 128,000 tons of mineral fertilizers.
At the same time, Cherkasy Azot in March updated the maximum figure since the beginning of the full-scale war, producing 137,800 tons of mineral fertilizers.
"The 1st and 2nd quarters are key in the agricultural production cycle, since it is in the spring sowing that farmers put most of the nitrogen fertilizers. We achieved strong production results in Q1. This season is different from all previous ones. The first feature - the "high" season of active procurement increased by almost two months. The second is that the total demand for fertilizers is recovering much faster than everyone expected," said Oleh Arestarkhov, head of corporate communications at Group DF.
The volume of urea production in the 1st quarter increased 4.7 times from 22,800 to 106,500 tons, and the volume of UAM (urea-ammonia mixture) production - 2.1 times from 50,900 tons to 108,500 tons.
The production of ammonium nitrate slightly increased from 217,100 tons to 255,400 tons, while the production of LAN (lime-ammonium nitrate) decreased from 62,300 tons to 10,600 tons.
"Ostchem's production facilities are loaded in such a way as to close the demand of farmers as quickly as possible and supply fertilizers in accordance with contracts. The decrease in gas prices made it possible to reduce selling prices for mineral fertilizers. As fertilizers became more affordable, we started selling more, and showed very good results. This spring, high business occupancy lasts longer than usual. We are following the market. The production structure corresponds to the demand structure. The further demand will depend on the production load of plants, the timing of the repair campaign," said Arestarkhov.
As Ukrainian News Agency earlier reported, in 2022, Ostchem enterprises reduced their production of mineral fertilizers by 66.9% to 1.754 million tons compared to 2021.
Ostchem Holding unites Group DF nitrogen chemistry enterprises.
Group DF is a diversified international group of companies whose business is represented in 11 countries in Europe and Asia.
The main activities of the group are nitrogen, titanium and gas businesses.
The founder and owner of Group DF is businessman Dmytro Firtash.
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