IHS Chemical Company on March 10 , said between Russia and Ukraine rhyme escalating political conflict could lead to the Black Sea region of fertilizer and ammonia production and export of interruption. Market participants worried that happens , then the market will make the tight supply , and even lead to market volatility , thereby stimulating prices rose sharply.
Ukraine is the largest producer of nitrogen fertilizer . Russia and Ukraine before the political conflict , Russia ‘s Gazprom (Gazprom) is supplied to the gas price for Ukraine $ 270 / thousand cubic meters, 33% lower than the market price , the price advantage of natural gas to Ukraine, ammonia and urea production provided a greater competitive advantage. But with the Russia-Ukraine conflict occurs , the Russian gas to Ukraine has decided to cancel the gas price discount , Ukraine ammonia and urea cost advantage will be gone.
Ukrainian fertilizer industry to the existence and development of one of the most critical factors in the natural gas supply of raw materials to its competitive prices . IHS Chemical said that once Ukraine’s gas cost advantage disappears, its export competitiveness of fertilizer will be seriously affected. Ukrainian fertilizer exports accounted for a larger share of the global market, the country’s fertilizer production and exports on the global market disruptions caused by the self-evident. IHS senior analyst in charge of chemical fertilizers and ammonia Bala Suresh said that in January 2009 the Russian gas had to reduce gas supplies to Ukraine , then to the international price of urea and ammonia than the previous month and were up by 17% 26% .
IHS Chemical says Ukraine exports of ammonia and nitrates ranked fourth in the world .
2012 its export volume of ammonia and nitrates reach 120 million tons, accounting for 6.5 % of the global trade in synthetic ammonia , 7% nitrate trade. Ukraine is the world ‘s fourth largest exporter of urea , over 90% of its urea production for export , accounting for 7 % to 8 % of global urea trade , mainly exported to Turkey, Italy , India, Brazil and Ethiopia as well as some of Latin America and Africa small countries.
IHS Chemical said that Ukraine ‘s ammonia and urea exports by saying black Haiyou inner harbor , the port cargo interrupt will significantly reduce international trade in these products. As Nika-Tera Russia , Ukraine and Hong Kong domestic exports of fertilizer products through eluosituapusi Yuzhny port and other ports in the Black Sea .
It is reported that the current operations of ammonia and urea production plant in Ukraine has not been affected by political unrest. The actual production of these devices can be mostly below design capacity , mainly because of the impact of fertilizer demand season .(chemicals supply)
