The plants of the nitrogen holding Ostchem produced 918.5 thousand tons of mineral fertilizers in the first half of 2024, which is 4.3% less than in the same period last year, the holding said in a statement on Monday.
“Uncontrolled imports cause the greatest damage to the chemical industry. Due to the dominance of cheap fertilizers from countries friendly to Russia, production volumes fell by 4.3%,” the release quoted Sergiy Pavlyuchuk, production director of Ostchem’s nitrogen business, as saying.
It also notes that the impact was caused by energy supply restrictions and a shortage of personnel.
“In addition to power outages due to the destruction of the energy infrastructure, there is also a shortage of staff: since the beginning of the full-scale war, almost 20% of employees have been mobilized at the plants, there is a staff shortage of about 15%, and we are forced to retrain staff who are learning new specialties,” Pavlyuchuk said.
According to the release, Cherkasy Azot produced 717.8 thousand tons of fertilizer in the first half of the year and remained Ukraine’s largest producer of mineral fertilizers, while Rivne Azot maintained its production at the same level as last year – 200.7 thousand tons.
High levels of dumped imports resulted in a decline in domestic production of the most popular fertilizers in Ukraine – ammonium nitrate and urea. In particular, the volume of ammonium nitrate production by Ostchem plants decreased by 9% compared to the same period last year – from 398.7 thousand tons to 362.9 thousand tons, the holding noted.
Ostchem also noted uncontrolled imports, which provoked a 10.8% decline in urea production: production fell from 205.9 thousand tons to 183.6 thousand tons.
At the same time, the holding was able to strengthen its position in the urea-ammonia mixture (UAN) market. In the first half of the year, UAN production at Ostchem’s plants increased by 11.4%, from 277.7 thousand tons to 309.2 thousand tons. The holding explains this by the high popularity of this fertilizer and the logistical advantages of Ukrainian producers. To meet the growing demand, new UAN production sites are being set up at Cherkasy Azot (capacity of 1 million tons per year) and Rivne Azot (capacity of 300 thousand tons per year).
According to the holding, the total volume of nitrogen fertilizer imports to Ukraine in 1H2024 amounted to 1.298 million tons. At the same time, imports of ammonium nitrate amounted to 176.6 thousand tons, urea – 311.3 thousand tons, NPK – 108.5 thousand tons, sulfate – 159.8 thousand tons, NP – 77.71 thousand tons, and UAN – 50.8 thousand tons.
Ostchem is the nitrogen holding of Dmitry Firtash’s Group DF, which unites the largest mineral fertilizer producers in Ukraine. Since 2011, it has included Rivne Azot and Cherkasy Azot, as well as Severodonetsk Azot and Stirol, which are out of operation and located in the occupied territories.
Cherkasy Azot PrJSC (Cherkasy, Ukraine) is one of the largest Ukrainian chemical companies. The design production capacity is 962.7 thousand tons per year of ammonia, 970 thousand tons per year of ammonium nitrate, 891.6 thousand tons of urea, and 1 million tons per year of UAN.
Rivne Azot is one of the largest Ukrainian chemical companies in Western Ukraine. On April 12, 2024, Group DF and South Korean Hyundai Engineering signed an agreement to build a chemical hub in Rivne. The project envisages the construction of green ammonia and hydrogen plants based on renewable energy sources; new enterprises and production sites for nitrogen fertilizers and chemical derivatives.
On August 5, the Ukrainian State Postal Service Enterprise Ukrposhta (Kiev) announced its intention to conclude a contract of compulsory insurance of civil liability of owners of motor vehicles (MTPL) with Euroins Ukraine (Kiev).
According to the electronic public procurement system “Prozorro”, the company’s price offer amounted to UAH 24.41 thousand against UAH 68.107 thousand of the expected cost of purchasing services.
The tender was attended by insurance companies Inter-Policy with a price offer of UAH 27.2 thousand, Krajina – UAH 32.2 thousand, Guardian – UAH 32.3 thousand, ESA – UAH 43.9 thousand.
IC “Euroins Ukraine” in 2023 increased premiums by 20,4% compared to 2022 – up to UAH 565 mln and concluded 17% more insurance contracts – more than 662 thousand.
Exports of Ukrainian pork increased by 36% in July 2024, while imports decreased by 23.5% compared to June, the Ukrainian Pig Association (UPA) reported, citing data from the State Customs.
“During July, almost 150 tons of pork (UKTZED 0203) were imported to Ukraine, which is 23.5% less than a month earlier. At the same time, the volume of pork exports in the second month of summer amounted to more than 400 tons, exceeding the June figure by more than 36%,” the report says.
According to analysts, pork imports for 7 months of 2024 amounted to 1.78 thousand tons, while exports amounted to 1.64 thousand tons. In currency terms, the difference does not exceed 10%, or $ 0.4 million.
“The average purchase price of pork in July slightly exceeded the June figure, but in general, quotations remain at a fairly low level. On the one hand, this forms an organic entry barrier for imports, on the other hand, it supports the competitiveness of Ukrainian pork in foreign markets,” the experts explained.
According to the USBA, the UAE remains the main foreign market for Ukrainian pork (85.7% of total exports for the period), and its importers are the EU countries (37.8%) and Canada (62.2%).
Forecast of power system capacity deficit, %
Source: Open4Business.com.ua
Gross gas production in Ukraine in January-June 2024 amounted to 9.4 billion cubic meters and by the end of the year can grow twice – by 100-200 million cubic meters more than last year’s figure (18.7 billion cubic meters), said Artem Petrenko, executive director of the Association of Gas Producers.
“According to our conservative forecasts for today, Ukraine in 2024 will be able to increase its own production by 100-200 million cubic meters compared to last year’s figure. We are oriented at 18.8 billion cubic meters per year. But this is such a conservative base scenario, which takes into account neither possible positive nor negative aspects,” he said in comments to Energoreforma on the sidelines of the Ukrainian Gas Open 2024 Energy Club, held on Thursday in Kiev.
According to Petrenko’s presentation at the forum, drilling of about 70 wells (150 wells for the whole of 2023) has been started in half a year.
He named the state-owned Ukrgasvydobuvannya as the flagship in this process, noting that private companies are also actively involved in drilling and working to increase production.
“In particular, Smart Energy is now resuming hydrocarbon production at three sites in Kharkiv and Poltava regions. Therefore, I hope that by the end of the year they will add to the total gas production,” said the executive director of the association.
At the same time, he noted that the daily production of private companies fell by 18% compared to last year.
A dry port is being built in the Vinnytsia community to help connect the central regions of the country with the ports of Odesa and the EU countries through the Mostyska container terminal, with an investment of $15 million, Vinnytsia Deputy Mayor Andriy Ocheretnyi wrote on Facebook.
“This will be a railroad terminal that will improve the prompt transportation and handling of cargo, as well as the export and import potential of our country. It will help to connect the central regions of the country with the ports of the big city of Odesa and, through the Mostyska container terminal, with the EU countries,” Ocheretnyi emphasized.
According to him, the first phase of construction began in the spring of 2024. At the first stage of the dry port construction, the railway infrastructure and the first container yard with a capacity of about 30 thousand TEU/year will be built. Meanwhile, 2000 TEU is the capacity of the container warehouse, which will also be built at this stage.
Currently, part of the railway tracks, a weighing system, and a 3.5 thousand square meter warehouse are ready.
“The Dry Port is scheduled to be commissioned in the third quarter of this year. It will employ about 50 people and is currently looking for machine operators. A total of 100 jobs are planned to be created, summarized the deputy mayor of Vinnytsia.
