Ukraine’s consumption of ammonium nitrate (AN) last year totalled 1 million mt, of which 330,000 mt were imported, according to a Fertilizerdaily report, citing Head of Ostchem Holding Sergey Pavlyuchuk.
The country also consumed 410,000 mt of urea, of which 225,000 mt was imported material, and 580,000 mt of UAN, of which 190,000 mt were imported, according to the report.
With the spring sowing season just around the corner, Ostchem – according to the report – has reduced retail prices for nitrogen fertilizers due to increased output at the group’s plants and a decrease in natural gas prices.
The price for urea has been cut by UAH2,000 (approximately $54.21 at current exchange rates) to UAH36,000 ($975.74) per ton (excluding delivery) and UAN by UAH4,000 ($108.42) to UAH29,000 ($786.02) per ton, according to the report.
Ostchem is the holding company for Group DF’s nitrogen fertilizer production, logistics, and shipping assets. Its fertilizer production units in Ukraine comprise Azot Cherkasy, Severodonetsk Azot, and RivneAzot.
While Azot Cherkasy and RivneAzot are operating, Severodonetsk Azot, which is located in eastern Ukraine in the Luhansk region stopped production shortly after Russia’s invasion of the country (GM March 4, 2022). At least two of its production units, including the ammonia unit, were subsequently damaged by Russian shelling and a subsequent fire in June (GM June 17, 2022).
Prior to the damage, Severodonetsk Azot had nameplate production capacity for 1.02 million mt/y of ammonia, 60,000 mt/y of aqueous ammonia, 390,000 mt/y of urea, and 550,000 mt/y of ammonium nitrate, according to Ostchem’s website.