Yara’s nitrates and NPK production curtailments are now being discontinued due to strong demand in Europe, Yara President and CEO Svein Tore Holsether told participants in an April 28 presentation of first-quarter earnings.
Adapting to market conditions, the company’s production curtailments in the first quarter amounted to 1.3 million mt of fertilizers (actual volumes) – around 30% of its European capacity – and 0.6 million mt of ammonia – about 44% of its European capacity (GM April 28, p. 24).
“A major part of the 1.3 million mt of the finished fertilizer production curtailments in the first quarter were nitrates and NPKs [and some urea, according to a company spokesperson],” Yara Executive Vice President and Chief Financial Officer Thor Giaever confirmed in an earnings call in response to an analyst’s question.
The Yara spokesperson told Green Markets that the company has not given a more detailed split of the curtailments per product in the first quarter.
After a declining price environment toward the end of 2022 and through the first quarter made farmers and distributors delay purchases, Yara said it sees a tighter nitrogen market into the second quarter, with “strong European demand at new season nitrate prices and strong farmer affordability metrics indicating higher nitrogen application rates.”