UralChem lowers fertilizer output by 7% in Jan-Sept
MOSCOW. Nov 11 (Interfax) - UralChem's enterprises decreased production of nitrogenous and phosphorus fertilizer by 7% year-on-year to 3.3 million tonnes in January-September 2009, the company said in a statement.
Production of ammonium phosphate in January-September dropped by 89% to 24,807 tonnes, diammonium phosphate - 77% to 38,672 tonnes, phosphoric acid - 78% to 3,2800 tonnes, sulphuric acid - 58% to 58,466 tonnes and ammonia - 23% to 298,101 tonnes.
Production of complex fertilizers went up by 28% to 454,842 tonnes, carbamide - 25% to 390,680 tonnes and ammonia nitrate and its production - 6% to 1.835 million tonnes.
"The decrease in total production for the first nine months of 2009 for separate types of fertilizer reflects the effect of the world economic crisis. Prices for production is much lower than last year. Prices for nitrogenous fertilizer halved and phosphorus - down four times in comparison with the maximum [price] in 2008. But we expect, starting from February of next year, meaning the start of the sowing season, a slight increase in prices," UralChem's general director, Dmitry Osipov, was cited as saying in the statement.
Osipov also said that a sharp decrease in total production of diammonium phosphate and ammophos had decreased over the nine months owing to ongoing difficulties in purchasing the key production material - apatite phosphate.
UralChem expects output to drop by 5% in 2009 partially owing to decreased production of phosphorus fertilizers.