Ukraine increased nitrogen fertilizer production by 81% in 2023

In 2023, compared to 2022, Ukraine managed to increase fertilizer production by 81% (2050 thousand tons in 2023 vs. 1130 thousand tons in 2022). However, this level of production is several times less than in 2021, when 5.2 million tons of nitrogen fertilizers were produced.

This is reported by Infoindustry News Agency based on its own monitoring of the fertilizer market. According to Dmytro Gordeychuk, fertilizer market expert at InfoIndustry, the company managed to increase its own production due to stable energy supply, low gas prices and relatively stable fertilizer consumption.

Although the consumption of fertilizers decreased at the end of 2023, the total volume of purchases increased. The volume of fertilizer imports grew rapidly in the first quarter, but declined in the second quarter. Although the total volume of imports of nitrogen fertilizers alone 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.

According to Dmytro Gordeychuk, as of December 1, nitrogen fertilizer producers had insignificant inventories. In spring 2024, farmers are expected to supply at least 800 thousand tons of ammonium nitrate and up to 600 thousand tons of urea. Some of the fertilizers have already been purchased. At the same time, by the beginning of 2024, the market will have accumulated more than half of the required nitrogen fertilizers for the sowing season. Nevertheless, pent-up demand exists and this will allow producers to raise prices.

Production volumes of main fertilizers in Ukraine in 2023 (December – expected figures).

Tags: fertilizers, Ukraine