OREANDA-NEWS. In 2014, Acron Group's commercial output was 6,267 kt, up 2% year-on-year due to increased output of apatite concentrate and non-organic compounds.

Commercial output of mineral fertilisers was down 3.1% in 2014 to 5,091 kt due to the planned overhaul of Dorogobuzh's main workshops in September and October. The fourth quarter also saw a planned overhaul at Hongri Acron, due to which the output decreased considerably.

With stable supplies of phosphate raw materials, Acron was able to maximise its capacity in Veliky Novgorod and boost output 5.1%. Commercial output of premium-grade UAN in Veliky Novgorod was up 16.1% because the unit's capacity increased to 1.0 mn tpa in early 2014.

Market Trends

China continued to increase its exports of nitrogen fertilisers in 2014. Over 12 months, urea exports went up 5.4 mn t to reach 13.6 mn t. However, this was offset by increased demand in India, the USA and Latin America. India boosted purchases by 1.7 million tonnes. Several nitrogen fertiliser producing countries, primarily Ukraine and Egypt, faced natural gas shortages. Consequently, Europe was forced to look for alternative suppliers, which balanced the market for nitrogen products in 2014.

NPK prices were up in 2014 as a result of recovering prices in the basic products markets. We expect complex fertiliser prices to be stable in 2015.

The market may face greater nitrogen product exports from China in 2015, since that country cancelled the seasonal export window and decreased its export duties on urea. Conversely, without the export window the market will become less volatile and more predictable. In this context, Russian producers will benefit from a weak rouble and remain competitive in the global market.

Chairman of the Acron Board of Directors Alexander Popov comments:

"In 2014, Acron Group continued to increase its output, and we expect this trend to be stable in the coming years. The first stage of the Oleniy Ruchey Mine will soon reach capacity of 1.1 mn t of apatite concentrate per year. The Ammonia-4 project at Acron's site in Veliky Novgorod is scheduled for commissioning in late 2015. The first ammonia unit built since Soviet times, Ammonia-4 will become the most powerful facility in Russia, producing 700 kt of ammonia per year.

Acron Group remains confident in today's complicated macroeconomic conditions. The markets for our key products are stable and predictable, and Acron Group's business model keeps it competitive in a global context."