Fertilizer production is growing in Ukraine

This year, Ukraine produced 2,050,000 tons of fertilizers, which is 81% more than last year. However, this level of production is significantly lower than in 2021, when 5.2 million tons of nitrogen fertilizers were produced.

According to fertilizer market expert Dmytro Hordiychuk, own production increased as a result of stable energy supply, low gas prices and relatively stable consumption of fertilizers.

"Although the consumption of fertilizers decreased at the end of 2023, the total volume of purchases increased. The volume of fertilizer imports grew actively in the first quarter, and declined in the second. Although the total volume of imports of only nitrogen fertilizers since the beginning of the year, as of December 18, 2023, has already exceeded 1.08 million tons, the market is ready to buy much more," the specialist believes.

In his opinion, as of December 1, the inventory of producers of nitrogen fertilizers was insignificant. It is expected that in the spring of 2024, farmers will contribute at least 800,000 tons of ammonium nitrate and up to 600,000 tons of urea. Some of the fertilizers have already been purchased. At the same time, by the beginning of 2024, the market will already have accumulated more than half of the necessary nitrogen fertilizers for sowing.

"However, pent-up demand exists, and this will allow producers to raise prices," the analyst believes.