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Prices of Ukrainian fertilizers have increased by 10-15 percent


Ostchem Holding, which includes the companies of the nitrogen chemistry group DF e.gusammen, has increased prices for mineral fertilizers by 10-15%. The Interfax-Ukraine agency reported this regarding the information provided by the press services of the DF group.

Prices have been revised due to the sharp rise in gas prices and exchange rate volatility. We keep the price until the end because we understand that farmers are having a hard time now. However, the changing market situation does not leave us much leeway.

Oleg Arrestarchov

Director of the Corporate Communications Department of the DF International Group

He explained that the price of natural gas is more than 70-80% of the cost of mineral fertilizers.

Der Verkaufspreis für Ammoniumnitrat mit Lieferung an einen Haushalt innerhalb von 200 km stieg um 8,7% auf 945 €/Tonne, Carbamid stieg um 6,8% auf 1080 €/Tonne, Kalk–Ammoniumnitrat um 11,8% auf 756 €/Tonne, und das größte Wachstum zeigte das Carbamido-Ammoniumgemisch um 15,2% auf 878 €/Tonne.

Oleg Arrestarkhov emphasized that after all previously concluded agreements with farmers and agrarian holdings to purchase fertilizers at a lower price, Ostchem “will 100% fulfill its obligations to deliver fertilizers”, which proves the effectiveness of buying fertilizers in the off-season.

The growth of solvent fertilizer demand and prices is now directly influenced by two factors - the release of grain exports by sea and prices on the Chicago Stock Exchange. So far, the trend has been disappointing: grain prices are falling, while the big fertilizer producers in the EU successively falter on rising gas prices.

Oleg Arrestarchov

Director of the Corporate Communications Department of the DF International Group

According to him, what is happening in the fertilizer market is part of a chain reaction that started last fall, while the war was only a catalyst for this reaction.

Therefore, there is every reason to expect a further increase in fertilizer prices and reduce their availability both in global markets and domestically. In Ukraine, fertilizer consumption has decreased by at least 30-40%, and it is a task for the government and the cabinet to support farmers through various tools as effectively as possible so that in 2023 there is no significant decrease in crops.

Oleg Arrestarchov

Director of the Corporate Communications Department of the DF International Group

In his opinion, manufacturers will reduce margins, but they will not be able to sell fertilizers below cost.

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