Mineral fertilizers (Russian market)

Main article: Agriculture in Russia

Mineral fertilizers (global market)

Main article: Mineral fertilizers (global market)

Chronicle

2023

Russia's largest fertilizer producers named

In 2023, the production of mineral fertilizers in Russia reached 59.8 million tons. This is 9% more than the previous year, when the volume of output was approximately 54.4 million tons. The recorded result turned out to be the maximum in 10 years, as stated in the review of the audit and consulting group "Business Profile," presented on March 18, 2024.

Analysts attribute the market's growth to several factors. In particular, the demand for fertilizers from agricultural producers has increased. In addition, Russian companies were able to increase production volumes thanks to the modernization of equipment and the introduction of new technologies. Investments in fixed assets of fertilizer producers in 2023 were the highest in 10 years. In addition, capacity utilization in the potash production segment significantly increased, which was reduced a year earlier due to the deteriorating geopolitical situation.

The rating of the largest fertilizer producers in Russia includes JSC, MHC EuroChem which in 2023 exported 5553 thousand tons of products, and 1306 thousand tons to the domestic market. JSC OHK Uralchem and PJSC Uralkali jointly exported 5475 thousand tons of fertilizers and shipped 1694 thousand tons to the domestic market for agricultural enterprises. PJSC closes the top three PhosAgro with 4498 thousand tons of export products and 1733 thousand tons of fertilizers for the domestic market. In addition, PJSC, JSC "Akron" GC, PJSC, "Nitrogen" JSC (TOAZ "Minudobreniya" Rossosh) and PJSC are named among the significant market players. KuibyshevAzot

It is noted that in Russia there are 15 enterprises for the production of ammonia with a capacity of about 20 million tons per year and nitrogen fertilizers with a capacity of about 25 million tons. The largest belong to Uralchem, EuroChem, Akron and PhosAgro^[1]

Growth in the production of mineral fertilizers in Russia by 9% to 60 million tons

The production of mineral fertilizers in Russia in 2023 increased by 9% compared to 2022 and reached 60 million tons. Deputy Minister of Industry and Trade Mikhail Yurin announced this at the end of January 2023.

Interfax, which cites Yurin's data, noted that 54.3 million tons of fertilizers were produced in Russia in 2022, and 58.6 million tons in 2021. According to the forecasts of the head of the Russian Association of Fertilizer Producers (RAPU) Andrei Guryev, in 2024 we can expect an increase in fertilizer production in Russia at the level of up to 10% by 2023 - up to more than 64 million tons.

Production of mineral fertilizers in Russia in 2023 increased by 9%

At the end of December 2023, Deputy Prime Minister and Head of the Ministry of Industry and Trade Denis Manturov predicted that by the end of 2023, the production of mineral fertilizers in the Russian Federation would grow by 8% in annual terms, to 58.5 million, while their total exports could increase by 5%, to 33.6 million tons.

By the way, we are among the world leaders in the mineral fertilizer market both in terms of export volumes and in terms of the quality of our products. The largest consumers of Russian mineral fertilizers - Brazil, India and, by the way, even the United States - are not going to abandon such high-quality products, Manturov emphasized.

According to the Russian Association of Fertilizer Producers (RAPU), by 2023 Russia still holds the first place in the world in exports and the second in the production of mineral fertilizers. Export growth in 2023 may be due not only to the continuation of growth in nitrogen and phosphorus-containing fertilizers, but also due to the restoration of potassium chloride exports, and probably due to the expansion of transshipment, says FG Finam analyst Alexei Kalachev.. The main markets for Russian fertilizers were previously Brazil, India and China, and in 2023 their share in fertilizer exports was supposed to increase even more. Neither the United States nor the EU imposed any restrictions on the supply of fertilizers from Russia, the analyst notes.^[2]

US increased imports of fertilizers from the Russian Federation by 127%

In the first quarter of 2023, fertilizer imports from Russia to the United States reached $596 million, which is 127.4% more than in the same period a year earlier ($262 million). This is stated in the study "Roscongress," as a result of which they were published in August 2023.

According to Kommersant, citing materials from Roscongress, the United States is one of the top three importers of Russian fertilizers, behind India and Brazil. The volume of purchases in January-March 2023 increased all three countries. Supplies to India grew the most, which reached almost $708 million against $78 million in the first three months of 2022. At the same time, Russia's share in the European market has significantly decreased in recent years, and its place is occupied by suppliers from Algeria, Egypt, Trinidad and Tobago, the USA. The total demand for fertilizers in this market is also decreasing.

Fertilizer IMport from Russia to the United States reached $596 million

By 2023, the Russian Federation occupies a leading position in terms of fertilizer supplies to India and Latin America. India accounts for about 15% of global fertilizer consumption and 80% in the South Asian region.

Future supplies from Russia, according to experts, will depend on the pace of expansion of export capacities on the Baltic Sea coast and in the Krasnodar Territory.

Russian fertilizers filled the German market, at the same time in Germany spending on their production amid the rejection of Russian gas increased by 150%, the Bild newspaper writes.

The publication specifies that fertilizers are not included in the sanctions list. European Union Journalists write that due to the refusal of gas from the Russian Federation, the cost of producing German fertilizers increased by 150%.

The result - the gas-intensive production of fertilizers (nitrogen and ammonia) has become unprofitable. At the same time, imports of Russian fertilizers to the EU, according to the industry, increased fivefold during the year, the newspaper said.[3]

Russia overtook the United States in the production of mineral fertilizers and became the second in the world after China

Russia overtook the United States in the production of mineral fertilizers and became the second in the world after China, President of the Russian Association of Fertilizers Guryev said in April 2022.

2022

Reduction in mineral fertilizer production by 11%, to 23.5 million tons

The production of mineral fertilizers in Russia in 2022 reached 23.5 million tons in terms of 100% nutrients, which is 11% less than a year ago. Such data in early February 2023 led Rosstat.

The agency ""refers to the materials of the department. Interfax It is reported that the market contracted largely due to a 32% drop in potassium chloride output, to 7.3 million tons. In physical weight, its output fell by 35%, follows from the data of the Russian Association of Fertilizer Producers (RAPU). This dynamics is explained by the reduction in exports due to sanctions and the low demand for the product in Russian. agriculture At the same time, the production of nitrogen fertilizers in 2022 increased by 3.5% compared to 2021 - to 11.8 million tons, phosphorus - by 1%, to 4.4 million tons.

Russia in 2022 reduced fertilizer production due to a fall in the potassium segment

According to the head of RAPU Andrei Guryev, the companies began to move to the ports of the Russian Federation in the summer of 2022 and change supply routes.

This confirms that Russian manufacturers, starting from June-July, began to recover from sanctions pressure, find new alternative methods of supply - to leave the ports of the Baltic states to the ports of the Russian Federation, to increase supplies to the markets of friendly countries, "he said.

Guryev also said at the end of December 2022 that over the past nine years, Russian fertilizer producers have invested more than 1.5 trillion rubles in development. Over the years, production has grown by 43%, to 26.3 million tons (in terms of 100% of the active ingredient), exports - by 38%, and supplies to the domestic market - more than doubled.

According to a study by the marketing agency Roif Expert, in 2022 the volume of the Russian market for commodity organic fertilizers increased by 60%. A key trend in the market for commodity organic fertilizers is the maximum reduction in purchases of commodity organic fertilizers of imported production.^[4]

Russian agrarians purchased a record volume of mineral fertilizers since 1993

In 2022, Russian farmers purchased over 5 million tons of mineral fertilizers, which is 8.1% more than a year earlier, and is a record result since 1993. This was reported to the Ministry of Agriculture on January 11, 2023.

As noted in the department, increasing the volume of mineral fertilizers is one of the key tasks to increase the yield of crops and their gross fees. The Russian government pays special attention to maintaining the availability of mineral fertilizers for farmers. For this, a special set of measures continues to operate, including export quotas for certain types of products and price fixing. In addition, the Ministry of Agriculture, together with the Ministry of Industry and Trade and the regions, approved a plan for the purchase of mineral fertilizers by the end of May 2023, the Ministry of Agriculture of the Russian Federation added.

In 2022, Russian farmers purchased over 5 million tons of mineral fertilizers

The largest volume of mineral fertilizers in 2022 was acquired by farmers of the Ryazan region (125.5% of the plan), Novosibirsk region (121.1%), Altai Territory (120.1%), Kursk region (114.8%). This allowed, according to preliminary data, to raise the level of contribution to 60 kg per 1 hectare of sown area on average in the country (in 2021 - 55 kg per 1 hectare).

According to preliminary estimates of the Ministry of Industry and Trade, the export of fertilizers from Russia in 2022 decreased by 10%. According to Kommersant, the decline in exports began almost immediately after the start of the special operation of the Russian Federation in Ukraine due to the refusal of large carriers to deliver Russian cargo, although there is no official ban on the purchase of chemical products from Russia - fertilizers were withdrawn from sanctions. Manufacturers had to switch to transportation by smaller ships, as well as partially reorient supplies to Asian countries. In addition, companies from the Russian Federation face problems when paying for freight.^[5]

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