PhosAgro PJSC reported a 2% growth in its agrochemicals output in 2023, to a record 11.28 million mt from 11.07 million mt the previous year, and in line with the output guidance given by the group in early December (GM Dec. 8, 2023).
Fertilizer output in 2023 totaled 10.99 million mt, also up 2% year-over-year, while production of other agrochemicals was down 5% from 2022, to 286,000 mt.
PhosAgro said the growth in its fertilizer output was driven primarily by an 8% increase in DAP and MAP production, to more than 4.5 million mt. MAP output alone increased by 13%, largely driven by the ramp-up at the group’s Volkhov complex in southern Russia (GM Sept. 1, 2023). A 4% rise in ammonium nitrate production and a 2% increase in urea output, to 723,000 mt and 1.7 million mt, respectively, also helped boost the group’s 2023 output.
PhosAgro also highlighted a 2% year-over-year increase in the production of key feedstocks, mainly due to a 5% increase in the production of phosphoric acid and a 3% rise in sulfuric acid production, to 3.3 million mt and 8.1 million mt, respectively. The increase in sulfuric acid output was driven by improved operational efficiency at the Cherepovets unit and the launch of a new unit at the Balakovo site late last year.
PhosAgro said in December that it plans to boost production by 1.4 million mt/y by 2026 versus the current level (GM Dec. 8, 2023).
PhosAgro Production Volumes
| ‘000 mt | FY2023 | FY2022 | % change |
| Fertilizers | |||
| Phosphate Fertilizers | 8,388.7 | 8,224.4 | +2 |
| Nitrogen Fertilizers | 2,605.3 | 2,546.6 | +2 |
| Total Fertilizers | 10,994.0 | 10,771.0 | +2 |
| Other Products | |||
| STPP | 55.7 | 68.3 | (18) |
| Other | 230.3 | 233.6 | (1) |
| Total Other Products | 286.0 | 301.9 | (5) |
| Total Agrochemical Products | 11,280.0 | 11,072.9 | +2 |
| Feedstocks | |||
| Ammonia | 1,982.8 | 1,985.3 | (0.1) |
| Phosphoric Acid | 3,345.3 | 3,199.4 | +5 |
| Sulfuric Acid | 8,120.0 | 7,920.2 | +3 |
| Ammonium Sulfate | 260.2 | 322.6 | (19) |
| Total Feedstocks | 13,708.3 | 13,427.6 | +2 |
Increased production and productivity were one of the critical factors in PhosAgro’s decision to index the wages of the group’s employees from Feb. 1, 2024, by a further 15% in addition to the 60% increase in average wages from 2021 through 2023, PhosAgro CEO Mikhail Rybnikov reported on Feb. 6.
The group earlier reported that it exported 8.7 million mt of fertilizers in 2023 based on preliminary data, a 1% increase on 2022’s export volume of 8.6 million mt (GM Jan. 5, p. 26). PhosAgro’s nitrogen fertilizer exports increased 6.5% year-over-year, while phosphate exports rose 8.7%.