The Group’s Consolidated Output (including operating results for Acron, Dorogobuzh and North-Western Phosphorous Company)
Mineral fertilisers
| Product, '000 t |
Q1 2021 |
Q1 2020 |
YOY, % |
| Ammonia |
668 |
677 |
1.6 |
| Incl. in-house consumption | 677 | 634 | |
| Nitrogen fertilisers, including | 1,170 | 1,114 |
5.0 |
| Incl. in-house consumption |
170 |
170 | |
| AN |
575 |
604 |
-4.8 |
| Incl. in-house consumption | 46 | 53 | |
| Urea | 319 | 245 |
30.3 |
| Incl. in-house consumption |
124 |
117 | |
| Incl. prilled urea |
56 |
131 |
-57.1 |
| Incl. in-house consumption | 5 |
3 |
|
| Incl. granulated urea |
151 |
0 |
increase |
| Incl. in-house consumption |
7 |
0 |
|
| UAN |
276 |
265 |
4.1 |
| Complex fertilisers, including |
611 |
618 |
-1.1 |
| Incl. in-house consumption |
8 |
9 | |
| NPK |
584 |
590 |
-1.0 |
| Incl. in-house consumption |
8 |
9 | |
| Bulk blends |
27 |
28 |
-4.8 |
| Total commercial output for Mineral Fertilisers | 1,615 | 1,596 | 1.2 |
Industrial products
| Product, '000 t | Q1 2021 | Q 1 2020 | YOY, % |
| Organic Compounds, including | 118 | 112 |
5.2 |
| Incl. in-house consumption |
62 |
55 | |
| Methanol |
26 |
27 |
-5.3 |
| Incl. in-house consumption |
23 |
20 | |
| Formalin |
42 |
40 | 6.0 |
| Incl. in-house consumption |
38 |
35 | |
| Urea-formaldehyde resins |
50 |
45 |
10.8 |
| Incl. in-house consumption | 1 | 1 |
|
| Non-organic compounds, including |
290 |
249 | 16.5 |
| Low-density and technical-grade AN |
125 |
78 |
61.0 |
| Industrial urea |
41 |
45 |
-8.9 |
| Calcium carbonate |
111 |
113 |
-2.1 |
| Liquid carbon dioxide |
12 |
12 |
-0.8 |
| Argon | 2 | 2 | -6.3 |
| Total commercial output for Industrial Products |
346 |
306 | 13.2 |
Phosphate inputs
| Product, '000 t | Q1 2021 | Q1 2020 | YOY, % |
| Apatite concentrate | 313 | 256 |
22.5 |
| Incl. in-house consumption | 238 | 209 | |
| Total commercial output for apatite concentrate | 75 | 47 | 60.6 |
|
TOTAL COMMERCIAL OUTPUT |
2,035 |
1,948 | 4.5 |
Commercial output is output less in-house consumption.
Chairman from Chairman of Acron’s Board of Directors Alexander Popov:
‘In the first quarter of 2021, Acron Group produced 2,035,000 tonnes of its main commercial products. This is the third straight quarter that our commercial output has exceeded 2 million tonnes.
‘The capacity-building projects completed in the past year have already delivered positive outcomes: ammonia output increased 2%, and urea output was up 30%. It is particularly satisfying that granulated urea output at the new unit put on stream in May 2020 is still growing, reaching 151,000 tonnes in the reporting period.
‘We continue to focus on progressive development, with plans to further increase our commercial output. Construction of the Urea-6+ unit is underway, with expected commissioning in the second quarter of 2021. This new unit will add 520,000 tonnes of urea per annum to our total urea capacity.
‘Today, almost all of the ammonia produced by Acron Group is processed in-house into finished products with high added value, so we are implementing projects to boost capacity at the Ammonia-2 and Ammonia-3 units in Veliky Novgorod. Once these two units are upgraded using the best available technology in 2023, they will provide all of the ammonia required by our Novgorod–based facility’.
Market Trends
Global urea prices grew rapidly in Q1 2021. Baltic FOB prices reached a seven-year record-high of USD 350. This sharp rise was driven by several factors, including strong seasonal demand in Europe and the United States, limited urea volume available for export from China, an increase in global prices for natural gas, and record-high grain prices. India’s urea purchases give additional support to the market. However, the end of the high season in Europe and the United States and the expansion of Chinese exports may cause an excess of supply on the market, which could grow further this year with the commissioning of new production facilities in Africa and India.‘The capacity-building projects completed in the past year have already delivered positive outcomes: ammonia output increased 2%, and urea output was up 30%. It is particularly satisfying that granulated urea output at the new unit put on stream in May 2020 is still growing, reaching 151,000 tonnes in the reporting period.
‘We continue to focus on progressive development, with plans to further increase our commercial output. Construction of the Urea-6+ unit is underway, with expected commissioning in the second quarter of 2021. This new unit will add 520,000 tonnes of urea per annum to our total urea capacity.
‘Today, almost all of the ammonia produced by Acron Group is processed in-house into finished products with high added value, so we are implementing projects to boost capacity at the Ammonia-2 and Ammonia-3 units in Veliky Novgorod. Once these two units are upgraded using the best available technology in 2023, they will provide all of the ammonia required by our Novgorod–based facility’.
Market Trends
In Q1 2021, AN and UAN prices also increased to their highest level in several years due to strong seasonal demand in the Northern Hemisphere and growth in urea prices used as a benchmark for other nitrogen fertiliser prices.
NPK prices increased in Q1 2021 as well, mainly driven by higher prices for basic products (urea, DAP, and potassium chloride). The increase in basic product prices outstripped blends because of their higher liquidity, so the NPK 16-16-16 premium over the basic product basket decreased to 5% from the historical average of 20%.
Average Indicative Prices, USD per t, FOB Baltic/Black Sea
| Q1 2021 | Q4 2020 | Q1 2020 |
Q1 2021 / Q4 2020 change |
Q1 2021 / Q1 2020 change |
|
|---|---|---|---|---|---|
| NPK 16-16-16 |
312 |
262 |
252 |
19% |
24% |
|
AN |
234 |
166 |
187 |
41% |
25% |
| UAN |
213 |
119 |
123 |
79% |
73% |
| Urea |
326 |
234 |
217 |
39% |
50% |
| Ammonia |
329 |
211 |
222 |
56% |
48% |