Ukraine reports ammonium nitrate shortage

MOSCOW. Jan 11 (Interfax) - Ukraine is experiencing a shortage of ammonium nitrate caused by low workloads of plants and extremely small amounts of import, Ukrainian media outlets said with a reference to the Infoindustria information and analytical agency.

"Ukrainian plants in Cherkassy and Rovno produced only 59,000 tonnes of ammonium nitrate in December 2023. Over 70,000 tonnes were planned, and the backlog of advance payments is already reaching February, in other words, farmers and traders will receive goods they paid for in December 2023 in February 2024. There is effectively a shortage of ammonium nitrate caused by low workloads of production and extremely small amounts of import," the agency said.

At the same time, importers and manufacturers have complained about a weak demand from farmers caused by a decrease of amounts of export of grain and other agricultural products. Problems with border crossing in Poland, lines for export of grain, and the fight against the grey market resulted in a drop of prices and the pace of sales of agricultural products by farmers. Therefore, farmers were left without funds to purchase fertilizers in January, analysts said.

"Ammonium nitrate is always a top product to purchase in December and January, and this fertilizer is a traditional one for feeding on Ukrainian fields. The season of introducing ammonium nitrate will start with high prices," Infoindustria said.