Group’s Consolidated Output (including operating results for Acron, Dorogobuzh and North-Western Phosphorous Company)
Mineral fertilisers
Product, '000 t | 6M 2020 | 6M 2019 | YOY, % |
Ammonia | 1,374 | 1,362 | 0.9 |
Incl. in-house consumption * |
1,306 |
1,189 | |
Nitrogen fertilisers | 2,442 | 2,561 | -4.7 |
Incl. in-house consumption | 403 | 577 | |
AN | 1,227 | 1,072 | 14.4 |
Incl. in-house consumption | 135 | 219 | |
Urea | 568 | 631 | -10.1 |
Incl. in-house consumption | 269 | 358 | |
UAN | 648 | 858 | -24.5 |
Complex fertilisers: | 1,140 | 1,056 | 8.0 |
Incl. in-house consumption | 16 | 15 | |
NPK | 1,080 | 998 | 8.2 |
Incl. in-house consumption | 16 | 15 | |
Bulk blends | 60 | 58 | 3.7 |
Total commercial output for Mineral Fertilisers | 3,231 | 3,197 | 1.1 |
Industrial products
Product, '000 t | 6M 2020 | 6M 2019 | YOY, % |
Organic Synthesis Products | 187 | 242 | -22.7 |
Incl. in-house consumption | 94 | 125 | |
Methanol | 44 | 51 | -13.6 |
Incl. in-house consumption | 35 | 45 | |
Formalin | 67 | 87 | -22.8 |
Incl. in-house consumption | 58 | 79 | |
Urea-formaldehyde resins | 75 | 104 | -27.2 |
Incl. in-house consumption | 1 | 1 | |
Non-organic compounds | 493 | 399 | 23.5 |
Low-density and technical-grade ammonium nitrate | 156 | 93 | 67.2 |
Industrial urea | 66 | 60 | 10.6 |
Calcium carbonate | 243 | 217 | 11.8 |
Liquid carbon dioxide | 24 | 25 | -2.6 |
Argon | 3 | 4 | -4.5 |
Total commercial output for Industrial Products | 585 | 516 | 13.4 |
Phosphate inputs
Product, '000 t | 6M 2020 | 6M 2019 | YOY, % |
Apatite concentrate | 538 | 482 | 11.5 |
Incl. in-house consumption | 433 | 393 | |
Total commercial output for Apatite Concentrate | 105 | 90 | 17.2 |
TOTAL COMMERCIAL OUTPUT |
3,921 | 3,803 | 3.6 |
Comments from Chairman of Acron’s Board of Directors Alexander Popov:
“In H1 2020, Acron Group beat its previous record for commercial output. In the reporting period, the Group produced 3,921,000 tonnes of commercial products up 3% year-on-year. Mineral fertiliser output was up 1% to 3,231,000 tonnes.
“Ammonia output increased 1% to 1,374,000 tonnes, and ammonia processed into finished products went up 10% to a record 1,306,000 tonnes. We plan to further increase our ammonia output by the end of 2020 by upgrading the Ammonia-4 unit, which will expand its capacity to 900,000 tonnes per annum. In the reporting period, agricultural-grade AN output was up 14% to 1,227,000 tonnes. Technical-grade AN output increased 67% to 156,000 tonnes, driven by the Group’s efforts to promote this niche product.
“UAN output was down 25% to 648,000 tonnes, and this reflects the pricing environment, which varied by quarter. Prices were low in Q1 2020, so we dialled back UAN output to 265,000 tonnes. However, in Q2 2020, UAN prices went up due to strong demand and we reacted by increasing UAN output to 383,000 tonnes, which is close to our maximum.
“In May 2020, the Acron facility in Veliky Novgorod launched a new granulated urea unit, improving production chain flexibility and introducing a new product, granulated urea. Since the unit’s commissioning, Acron has produced 34,000 tonnes of granulated urea.
“NPK output was up 8% to 1,140,000 tonnes in response to strong demand and stable supplies of phosphate feedstock – apatite concentrate – from the Group’s Oleniy Ruchey mine. In the reporting period, apatite concentrate output was up 12% to 538,000 tonnes”.
Market Trends
In Q2 2020, global urea prices dropped as expected for the low-demand season. Prices found support in early June 2020, however, and industry experts expect a smooth recovery in the coming months due to strong demand in India and Brazil. The market environment will further improve when demand heats up in Q4 2020 in the Northern Hemisphere.
Urea prices are a benchmark for other nitrogen fertilisers, and AN prices followed that benchmark down in Q2 2020. UAN prices, on the contrary, were up, supported by strong demand in the United States, a key market for this product.
In Q2 2020, NPK prices remained relatively stable, supported by a similar pricing trend for the basic product basket. The prices remained flat in the phosphate segment, and a decrease in the nitrogen segment was offset by a price recovery in the potash segment.
“In H1 2020, Acron Group beat its previous record for commercial output. In the reporting period, the Group produced 3,921,000 tonnes of commercial products up 3% year-on-year. Mineral fertiliser output was up 1% to 3,231,000 tonnes.
“Ammonia output increased 1% to 1,374,000 tonnes, and ammonia processed into finished products went up 10% to a record 1,306,000 tonnes. We plan to further increase our ammonia output by the end of 2020 by upgrading the Ammonia-4 unit, which will expand its capacity to 900,000 tonnes per annum. In the reporting period, agricultural-grade AN output was up 14% to 1,227,000 tonnes. Technical-grade AN output increased 67% to 156,000 tonnes, driven by the Group’s efforts to promote this niche product.
“UAN output was down 25% to 648,000 tonnes, and this reflects the pricing environment, which varied by quarter. Prices were low in Q1 2020, so we dialled back UAN output to 265,000 tonnes. However, in Q2 2020, UAN prices went up due to strong demand and we reacted by increasing UAN output to 383,000 tonnes, which is close to our maximum.
“In May 2020, the Acron facility in Veliky Novgorod launched a new granulated urea unit, improving production chain flexibility and introducing a new product, granulated urea. Since the unit’s commissioning, Acron has produced 34,000 tonnes of granulated urea.
“NPK output was up 8% to 1,140,000 tonnes in response to strong demand and stable supplies of phosphate feedstock – apatite concentrate – from the Group’s Oleniy Ruchey mine. In the reporting period, apatite concentrate output was up 12% to 538,000 tonnes”.
Market Trends
In Q2 2020, global urea prices dropped as expected for the low-demand season. Prices found support in early June 2020, however, and industry experts expect a smooth recovery in the coming months due to strong demand in India and Brazil. The market environment will further improve when demand heats up in Q4 2020 in the Northern Hemisphere.
Urea prices are a benchmark for other nitrogen fertilisers, and AN prices followed that benchmark down in Q2 2020. UAN prices, on the contrary, were up, supported by strong demand in the United States, a key market for this product.
In Q2 2020, NPK prices remained relatively stable, supported by a similar pricing trend for the basic product basket. The prices remained flat in the phosphate segment, and a decrease in the nitrogen segment was offset by a price recovery in the potash segment.
Average Indicative Prices, USD/t, FOB Baltic/Black Sea
Q2 2020 | Q1 2020 | Q2 2019 |
Q2 2020 / Q1 2020 change |
Q2 2020 / Q2 2019 change |
|
---|---|---|---|---|---|
NPK 16-16-16 | 258 | 252 | 305 | 2.4% | -15.3% |
AN | 153 | 187 | 197 | -18.6% | -22.5% |
UAN | 144 | 123 | 138 | 17.2% | 4.8% |
Urea | 207 | 217 | 250 | -4.7% | -17.3% |
Ammonia | 197 | 222 | 223 | -11.4% | -11.9% |