PhosAgro has leveraged market conditions
In January-March of this year, PhosAgro increased the production of mineral fertilizers by 8.6% to 2.547 million tons. Of these, the production of nitrogen fertilizers grew by 8.8% to 617.5 thousand tons, phosphorus – by 8.5% to 1.929 million tons.
Sales of mineral fertilizers expanded by 9.6% to 2.790 million tons, namely sales of nitrogen-based fertilizers rose by 13.8% to 720.8 thousand tons, phosphate-based – by 8.2% to 2.087 million tons.
“Seeing a record increase in demand in the first quarter, we redirected supplies to our domestic market. As a result, the Russian market’s share in total sales increased to 33%. A significant increase in purchases for spring field work, which started earlier this year and has been much more intense, can be attributed to the large increase in agricultural production last year, which was the result of the introduction of sound government policies in the agricultural sector and support from fertilizer producers,” commented PhosAgro CEO Andrey Guryev. “In terms of the global fertilizer market, fertilizer prices began to recover in the first quarter on the back of seasonal recovery in demand. Prices also got a boost during this period from a global reduction in supply due to weak profitability for producers, as well as measures introduced to counteract the spread of the coronavirus.”