Press release: Acron Group’s Fertiliser Output Up 19% in 9M 2017

  Group’s Consolidated Output (including operating results for Acron, Dorogobuzh and North-Western Phosphorous Company)

 

“Acron Group’s facilities increased mineral fertiliser output 19% in nine months of 2017. They achieved all-time high results for 9M and H1 due to sustainable operation of the ammonia unit commissioned in 2016 in Veliky Novgorod and upgrades to key production units at both facilities..

“The Group increased ammonia output by almost 25%, with the new Ammonia-4 unit more than tripling its output year-on-year to 582,000 tonnes (9M 2016: 176,000 tonnes). Following upgrades to the urea units at Acron’s Veliky Novgorod facility, urea output increased 19%. Ammonium nitrate output at the Acron and Dorogobuzh facilities increased 19% and 12%.

“Complex fertiliser output was up 46% over nine months of the year. Acron Group is adapting to changing market conditions and growing demand for complex fertilisers by increasing its output and range of brands. The Group will continue to produce new brands of NPK and blended fertilisers to meet the market’s needs.

 

“The Group hit another record with its NPK output, which climbed 17% due to implementing the project, which increased capacity at the two Veliky Novgorod-based NPK units to 2,000-tpd. In 2016, Dorogobuzh also revamped its NPK unit as part of a scheduled overhaul.

 

“In the reporting period, apatite concentrate output increased 5% despite poor results for Q1, which were caused by considerable overburden operations. In Q2 and Q3, apatite concentrate output hit a record high. Mine expansion work is underway, and the first 44,000 tonnes of ore were produced at the underground mine in Q3.

 

“We will continue to see output increase as an effect of our new investment programme for production expansion through 2025”.

Nitrogen fertiliser prices actively recovered in Q3 2017: in early July, urea prices were $180 FOB Baltics, and by late September they reached $260. The recovery was supported by strong demand from Brazil, which has boosted urea imports 50% this year. In September, the market was supported by aggressive demand in India, where favourable weather conditions encouraged generous fertiliser application. At the same time, higher coal prices triggered a cost increase in China. These factors combined to provide support for urea prices.

  

Average Indicative Prices, USD/t, FOB Baltic/Black Sea

	Q3 2017	Q2 2017	Q3 2016	Q3 2017 /  Q2 2017  change	Q3 2017 /  Q3 2016  change
NPK 16-16-16	262	264	277	-0.8%	-5.5%
AN	184	168	147	+9.9%	+25.2%
UAN	126	137	127	-7.5%	-0.1%
Urea	205	191	181	+7.0%	+13.1%
Ammonia	199	284	210	-30.1%	-5.5%