Ukrainian fertilizer output increases in 1Q11 driven by rising prices

In 1Q11, Ukraine raised ammonia output by 36% y-o-y, ammonia output by 11% y-o-y, and urea by 19% y-o-y, Interfax reported yesterday. Stirol increased ammonia production by 88% y-o-y, urea production by 170% y-o-y and resumed ammonia nitrate production, which was suspended since 2009, producing 57.5 ths mt of the fertilizer in 1Q11. The overall recovery in fertilizer output was the result of improvement of global fertilizer prices; in 1Q11 the average FOB Yuzhny ammonia price increased by 40% y-o-y to USD 465 per mt while urea prices rose 25% y-o-y to USD 351 per mt.