In March, Ukrainian fertilizer producers reduced the production capacity of nitrogen fertilizers.
According to Infoustria news agency, in February, the capacity utilization of the Rivneazot and CherkasyAzot plants was 65-67% (as of February 21). As of March 21, the utilization of Rivneazot dropped to 45%, and CherkasyAzot to 31%, calculated by specialists, taking into account gas consumption and unloading of finished products.
"This is due to the shelling of the gas transport system, which occurred against the backdrop of high fertilizer market activity ahead of the agricultural season. As a result, Ukraine's urea production will decrease by at least 45-50% in March compared to last year. However, imports cannot increase due to limited available volumes for purchase in April. This will lead to a consistently high price for the product," analysts add.
Currently, urea is sold on the free market at a price of 24,600 UAH/ton, FCA-ports of Ukraine, with an average price including delivery to central Ukraine being around 25,800 UAH/ton, bagged.
Experts also note that the global price of urea has decreased by an average of $20/ton across all sources in the past week. However, prices for raw materials — ammonia and natural gas — are also decreasing, as the fertilizer purchase season in EU countries has begun and is at its peak. Gas prices in the EU have stabilized.
