UralChem sees production declines

Moscow-Russian fertilizer producer UralChem OJSC reported significant declines in phosphate production for the first nine months of 2009 when compared with the same period in 2008. The company reported DAP production of 38,672 mt for the period, a 77 percent drop from last year’s 169,770 mt. MAP production was pegged at 24,807 mt, down 89 percent from the 235,342 mt reported for the same period in 2008. CEO Dmitry Osipov attributed the phosphate production declines to “ongoing difficulties with supplies of apatite concentrate – our key phosphate fertilizer feedstock.” Phosphoric acid and sulfuric acid production were also down, to 3,280 mt and 58,466 mt, respectively, from last year’s 15,171 mt and 140,456 mt. Osipov said the company was responding by carrying out modernization initiatives and launching production of complex NPK fertilizer at its Voskresensk Mineral Fertilizer facility. UralChem’s ammonia production also saw declines for the period, at 298,101 mt compared with last year’s 389,240 mt. Urea production was up 25 percent, to 390,680 mt from last year’s 312, 529 mt. Total commercial fertilizer output for the company was just over 3.3 million mt for the first nine months of 2009, a 7 percent decline from last year’s 3.55 million mt. “Reduced production levels for some of our fertilizer products were a result of the global financial crisis,” Osipov said. “The mineral fertilizer industry currently finds itself in a difficult situation. Prices are considerably lower than they were last year. For nitrogen fertilizers, prices have decreased by two times, while phosphate fertilizers have fallen by four times in comparison with 2008 peaks. However, we expect to see relative growth starting from February 2010, as the sowing season begins.”