Group’s Consolidated Output (Operating Results for Acron, Dorogobuzh, Hongri Acron and NWPC)
Mineral fertilisers
Product, kt | Q1 2014 | Q1 2013 | Change, % |
Ammonia | 472.6 | 482.4 | -2.0 |
Incl. in-house consumption | 458.8 | 449.9 | |
Nitrogen fertilisers: | 803.5 | 752.6 | 6.8 |
Incl. in-house consumption | 140.1 | 119.4 | |
Ammonium nitrate (AN) | 402.0 | 413.1 | -2.7 |
Incl. in-house consumption | 37.8 | 32.4 | |
Urea | 166.5 | 152.0 | 9.5 |
Incl. in-house consumption | 102.3 | 87.0 | |
Urea-ammonium nitrate (UAN) | 235.0 | 187.5 | 25.3 |
Complex fertilisers: | 721.2 | 693.2 | 4.1 |
Incl. in-house consumption | 13.3 | 10.4 | |
NPK | 611.7 | 597.0 | 2.5 |
Incl. in-house consumption | 13.3 | 10.4 | |
Bulk blends | 109.5 | 96.2 | 13.8 |
Total commercial output for Mineral Fertilisers* | 1,385.1 | 1,348.5 | 2.7 |
Industrial products
Product, kt | Q1 2014 | Q1 2013 | Change, % |
Organic compounds: | 89.5 | 98.3 | -9.0 |
Incl. in-house consumption | 44.8 | 49.8 | |
Methanol | 20.9 | 21.6 | -3.4 |
Incl. in-house consumption | 15.2 | 18.2 | |
Formalin | 30.4 | 34.1 | -10.9 |
Incl. in-house consumption | 29.4 | 31.4 | |
Urea-formaldehyde resins (UFR) | 38.2 | 42.6 | (10.3) |
Non-organic compounds: | 193.0 | 161.9 | 19.2 |
Low-density and technical-grade ammonium nitrate | 53.4 | 60.3 | -11.4 |
Calcium carbonate | 86.2 | 52.0 | 65.8 |
Liquid carbon dioxide | 10.8 | 11.4 | -5.3 |
Argon | 1.6 | 1.7 | -5.1 |
Hydrochloric acid | 41.0 | 36.5 | 12.5 |
Total commercial output for Industrial Products* | 237.7 | 210.4 | 13.0 |
Phosphate inputs
Product, kt | Q1 2014 | Q1 2013 | Change, % |
Apatite concentrate | 214.9 | 105.2 | 104.3 |
Incl. in-house consumption | 190.9 | 105.2 | |
Total commercial output for Apatite Concentrate* | 24.0 | 0 | growth |
TOTAL COMMERCIAL OUTPUT* | 1,646.8 | 1,558.9 | 5.6 |
* Commercial output is output less in-house consumption.
Chairman of Acron’s Board of Directors Alexander Popov comments on the results:
In Q1 2014, Acron Group’s production facilities produced 1,647k tonnes of their main commercial products, up 6% year-on-year. Mineral fertiliser output increased 3% to 1,385k tonnes, despite insignificantly reduced ammonia output.
We have reached the stage where Acron Group is starting to see the results of its previously completed investment projects. For instance, a 7% increase in nitrogen fertiliser output was provided by the new urea unit, launched in 2012, and the successful upgrading of the Urea-UAN production chain. The UAN unit’s annual output has reached 1 million tonnes, giving us reason to expect even higher results in this segment.
Complex fertiliser output was up 4%. This is the segment that has benefitted the most from vertical integration, resulting in a sustainable supply of own phosphates to the Group’s Russian production facilities. The Oleniy Ruchey mine more than doubled its apatite concentrate output (from 105k tonnes in Q1 2013 to 215k tonnes in Q1 2014) and continues to expand it. We plan to reach output level of 85k tonnes per month by midyear.
Industrial products output was up 13% to 238k tonnes due to a 66% boost in commercial calcium carbonate output and a 13% increase in hydrochloric acid output. Output of other products was down between 3 and 11% because of weaker demand from the wood processing and mining industries.
In Q1 2014, the global mineral fertiliser market faced dynamic demand from northern hemisphere consumers gearing up for a new seeding season. Prices for nitrogen products and NPK were down year-on-year, but increased against Q4 2013. The global fertiliser market remains highly competitive and volatile, but the industry’s fundamental factors contribute to ever increasing consumption and make producers feel confident about the future.
Average Global Prices, USD/ t*
Q1 2014 | Q4 2013 | Q1 2013 | Q1 2014 against Q4 2013, % | Q1 2014 against Q1 2013, % | |
---|---|---|---|---|---|
NPK 16-16-16 | 339 | 323 | 409 | 5.0 | -17.1 |
AN | 309 | 272 | 335 | 13.6 | -7.8 |
UAN | 273 | 218 | 310 | 25.2 | -11.9 |
Urea | 328 | 295 | 383 | 11.2 | -14.4 |
*Indicative FOB Baltic / Black Sea
Operating Results for Acron, Dorogobuzh, Hongri Acron and NWPC