A steep rise in gas feedstock prices has seen CF Industries decide to close its two UK ammonium nitrate fertiliser factories, while Yara International has also announced a reduction in its ammonia production.
A terse statement from US based CF Industries, parent to the CF Fertilisers business in the UK, says it is halting operations at both the Billingham and Ince manufacturing complexes in the UK, due to high natural gas prices. The company does not have an estimate for when production will resume at the facilities.
A similarly short statement from Yara International notes that record high natural gas prices in Europe are impacting the company’s ammonia production margins. As a result, it is curtailing production at a number of its plants. “Including optimization of on-going maintenance, Yara will by next week have curtailed around 40% of its European ammonia production capacity,” it says.
“Yara will continue to monitor the situation, with the objective to keep supplying customers but curtailing production where necessary.”
ADM Agriculture’s head of fertiliser Calum Findlay added that the record high natural gas prices in Europe meant that many European fertiliser manufacturers are reluctant to offer any new terms, meaning that imported product is very tight.
“Granular urea has also traded higher this week as the US, South America and Europe enter the market. Values in Egypt have now moved up a further $30/tonne over the week,” he says.