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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)

Mineral fertilisers

Product, '000 t 9M 2017 9M 2016** YOY, %
Ammonia1,9231,568 22.6
Incl. in-house consumption 1,518 1,397
Nitrogen fertilisers 2,890 2,708 6.7
Incl. in-house consumption 792 480
AN 1,4791,290 14.6
Incl. in-house consumption 469 121
Urea 692 581 19.0
Incl. in-house consumption 323 358
UAN 719 836 -14.0
Complex fertilisers: 2,095 1,438 45.7
Incl. in-house consumption 51 11
NPK 1,646 1,406 17.1
Incl. in-house consumption 51 11
Bulk blends 449 32 14x increase
Total commercial output for Mineral Fertilisers* 4,546 3,826 18.8

Industrial products

Product, '000 t 9M 2017 9M 2016** YOY, %
Organic Synthesis Products 328 281 16.8
Incl. in-house consumption 164147
Methanol 74 5533.1
Incl. in-house consumption 60 52
Formalin 121 105 14.7
Incl. in-house consumption 103 94
UFR 134 120 11.1
Incl. in-house consumption 1 1
Non-organic compounds 531 507 4.7
Low-density and technical-grade ammonium nitrate 104 140 -25.8
Calcium carbonate 380 320 18.8
Liquid carbon dioxide 42 42 1.2
Argon4 5 -5.1
Total commercial output for Industrial Products* 695 640 8.5

Phosphate inputs

Product, '000 t 9M 2017 9M 2016** YOY, %
Apatite concentrate 871 826 5.4
Incl. in-house consumption 669 593
Total commercial output for Apatite Concentrate* 201 234 -13.7


* Commercial output is output less in-house consumption.

** The Results do not include Hongri Acron’s output (the facility was sold in 2016)

Chairman of Acron’s Board of Directors Alexander Popov comments on the results:

“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. 

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

Market Trends

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.

The fourth quarter is expected to see traditionally strong seasonal demand before the upcoming spring sowing season in the Northern hemisphere, which will further sustain prices. According to industry experts, prices will hover at a higher level until February 2018. However, further growth is limited by increased supplies from China, where exports regain competitiveness at current prices.

Prices for premium nitrogen fertilisers, AN and UAN, recovered late in the third quarter following urea prices. The AN premium over urea increased due to strong demand in Brazil. The UAN premium vanished because of increased U.S. output and stronger competition.

In September, NPK prices increased due to higher prices in the nitrogen and potash segments. The NPK premium over the basic product basket- – urea, DAP and potash – remained high.

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

Q3 2017Q2 2017Q3 2016Q3 2017 /
Q2 2017
Q3 2017 /
Q3 2016
NPK 16-16-16262264277-0.8%-5.5%