OSTCHEM plants produced 520,6 thousand tons fertilizers in Q1 2024

The production structure remains fairly stable: ammonium nitrate remains the constant leader (246 thousand tons were manufactured), UAM (urea-ammonia mixture) was in the second place (123 thousand tons), and urea was the third (123,5 thousand tons). The production volume of lime-ammonium nitrate (LAN) amounted to 15,8 thousand  tons, ammonia – 9,08 thousand tons.

For consecutive years, OSTCHEM has reliably met its obligations during the spring sowing period, achieving 100% fulfillment. However, in 2024, a concerning industry trend emerged: fertilizers imports significantly exceeded domestic production.

 

«If we compare OSTCHEM’s production results for the 1st quarter of this year with the same period last year, when our plants produced 515,5 thousand tons of mineral fertilizers, we will see that production growth has actually stopped. The reason: the Ukrainian market is littered with imported fertilizers. In the 1st quarter of 2024, imports amounted to 701,2 thousand tons, by 35% exceeding domestic production. Imports continue to kill domestic production, four fertilizer producers have already been stopped – these are OPP, Dniproazot, Rivneazot and Sumykhimprom», – commented Oleh Arestarkhov, head of the corporate communications department of Group DF.

At the same time, Ukrainian producers continue to lose ground on the Ukrainian market in most fertilizer segments, except for UAM.

«First of all, Ukrainian chemical plants are dramatically losing the urea market: in the 1st quarter, Ukraine produced 123,5 thousand tons of urea, and imports amounted to 181 thousand tons. 88% of all imported urea was imported from Azerbaijan and Turkmenistan – states friendly to russia. Poland is also growing its position as the strongest importer of fertilizers to Ukraine. Poland today is littered with cheap russian and belarusian fertilizers, they did not fall under EU sanctions. They redirect all excess fertilizers from the Polish market to Ukraine», – Arestarkhov added.

In 2023 Poland imported 1.016 million tons of urea into its territory, of which urea from russia amounted to 34% (345 thousand tons).

At the same time, in the Ukrainian market, Poland in the 1st quarter of 2024 has already become the unconditional leader among importers in such types of fertilizers as ammonium nitrate, ammonium sulfate nitrate, UAM, NPK.

«Unfortunately, according to the loud slogans of Ukrainian officials in the framework of the “Buy Ukrainian” campaign, there are still no practical steps to reduce imports and real protection of the Ukrainian fertilizer producer. We see how the Poles defiantly defend their market, we see how the import of Ukrainian grain and other agricultural products into the EU is blocked. But at the same time, we are seeing a rapid increase in imports of fertilizers and agrarian products to Ukraine. All this is happening under the silent inaction of those who are obliged to protect the interests of Ukrainian industries and care about the preservation of Ukrainian jobs. Poland demonstrates to us how to effectively protect the interests of its producers through various subsidizing tools, it easily outplays its neighbors in trade wars. The result is on the scoreboard: Poland has become the most dynamic country in the EU in terms of GDP growth. And we have a reverse picture – someone lobbies for the interests of importers and imports grow, stopping one Ukrainian plant after another, killing the jobs of Ukrainians», –  Arestarkhov summed up.

He emphasized that specific proposals from the Union of Chemists of Ukraine are currently under consideration by the government. These proposals aim to safeguard the Ukrainian market and prevent the decline of the chemical industry in 2024.

Earlier it was reported that OSTCHEM launched UAN production. The new production line with a capacity of 300 thousand tons of urea – ammonium nitrate per year has been implemented at the “Rivneazot”.

As we informed, on April 12, Group DF together with Hyundai signed an agreement on the construction of a chemical hub in Rivne. The chemical park entails the construction of several plants in the city of Rivne: a plant for the production of nitrogen fertilizers and “environmentally friendly” hydrogen and ammonia.