According to the Ukrainian Agricultural Consulting Company, on August 11, 2023, nitrogen fertilizer production in Ukraine will reach a record high, exceeding 220,000 tons of all types of nitrogen fertilizer, which is the highest level since March 2022.
The growing demand for nitrogen fertilizer in EU countries and Asian markets allows Ukrainian producers to anticipate continued demand over the next three months.
"Thanks to the successful sales of nitrogen fertilizer in June and July, the Ukrainian Ostchem company managed to secure orders by September. According to various estimates, 120,000 to 150,000 tons of nitrates and 60,000 to 70,000 tons of urea, as well as ammonium nitrate and other fertilizers, may have been sold in the last two months, and the demand for these fertilizers remains insufficient in view of the ongoing field surveys in Ukraine in the autumn." 'The statement said.
Plants in Cherkasy and Rivne are expected to produce up to 100,000 tonnes of nitrates in August. Cherkasy's "Azot" plant will complete the maximum production schedule of urea, as well as the production of 60% ammonium nitrate, while "Rivneazot" will be able to roll out limestone nitrate in the second half of August. The plants will produce a total of 220-225,000 tons of products, a record for Ukraine in the past 530 days.
At the same time, the Ukrainian Agricultural consulting company noted that in September, the Odessa port plant and "DniproAzot" may be launched to add more nitrogen fertilizer to the country's market. These companies will compete for the limited domestic consumer market and enter the global market.
"Producers who are unable to sell nitrogen fertiliser domestically in August (when Agri-holding companies make purchases) will be forced to hold their stocks until February (when small and medium-sized agri-businesses make purchases)." Another marketing option is to export nitrogen fertilizer. From September 2023, this option will be attractive to everyone. Analysts predict that the situation in the fertilizer market will become more complicated due to Russia's withdrawal from the food Agreement, which has affected agricultural prices. .
Fertilizer market experts expect that farmers may buy more fertilizer in 2024 as a result of their successful harvest in 2023.
