KYIV. July 29 (Interfax-Ukraine) – Demand on fertilizers on the domestic market grew by 20% in January-June 2016, the press service of Group DF has reported, referring to Marketing, Strategic Analysis and Planning Director at Ostchem Maria Bezzubova.
“According to our assessments, in the first six months of 2016 demand on the domestic market grew by 20% on average, and even more for some products. For example, consumption of urea by the domestic market was over 550,000 tonnes compared to 450,000 tonnes year-over-year, consumption of ammonia nitrate was around 790,000 tonnes compared to 642,000 tonnes in H1 2015,” the press service said, citing Bezzubova.
She said that demand on multiple-nutrient fertilizers is also growing. The Ukrainian market consumed over 320,000 tonnes of urea-ammonium nitrate (UAN) compared to 275,000 tonnes in H1 2015, 75,000 tonnes of limestone ammonium nitrate (LAN) compared to 87,000 tonnes and around 650,000 tonnes of NPK fertilizers compared to 420,000 tonnes.
Bezzubova said that competition on the Ukrainian market in 2015-2016 has toughened: the capacities of Ukrainian plants cover domestic demand, but imports, mainly from Russia, is swelling.
“There is no secret that we see lobbying. Russian rival importers protect their interest and actively import fertilizers. The Ukrainian market is the largest nearest market for Russian producers. The incomparably low price of raw material – natural gas – allows them to compete here with any prices,” she said.
Ostchem is a managing company that coordinates operation of nitric chemical enterprises belonged to Dmytro Firtash’s Group DF.
