2026-03-03 13:29
publication
2026-03-03 13:29
Grupa Azoty stopped accepting new orders for nitrogen fertilizers due to a sudden increase in gas prices, but production was not stopped. The plants are operating at maximum production capacity, the group said in a press release. All previous orders are being processed.
“The Azoty Group confirms the information appearing in the public space about the suspension of the acceptance of new March orders for nitrogen fertilizers. We strongly deny the information about the suspension of production. Our plants operate at maximum production capacity. We would like to emphasize that we are fulfilling all orders that were placed with the Azoty Group before the announcement about the temporary suspension of the acceptance of new orders was published,” the company said in a statement.
She said the reason for the decision was the unstable geopolitical situation in the Middle East.
On March 2, the price of gas, the basic raw material for the production of nitrogen fertilizers, increased by 35-50 percent, and now the price is increasing by another 30 percent.
According to the company, the increases may be short-term. Fertilizer producers from outside Europe (Egypt, Algeria, China, USA) decided to immediately increase fertilizer prices (USD 45-70/mt).
“We have not decided to transfer such high costs to our partners. On the other hand, accepting orders on the current terms and conditions with such a drastic increase in costs would expose the company to negative consequences. The decision to temporarily suspend will allow for rational decisions to be made. Producers from other countries in our region have decided to take a similar step and suspend their offers. Importers of fertilizers from third countries have also withdrawn their offers,” added Grupa Azoty.
“There is no threat to meeting the demand of the domestic market. Orders from previous periods are being fulfilled, our Authorized Distribution Network also has storage infrastructure stocked with fertilizers,” the company said.
Grupa Azoty notes that it has not stopped accepting orders for multi-component fertilizers, where the share of gas costs in the total production cost is lower than in the case of nitrogen fertilizers. However, a change in the decision may be dictated by changes in the costs of other raw materials.
On Monday, a spokesman for Grupa Azoty informed PAP Biznes that due to the sudden increase in gas prices, Grupa Azoty decided to temporarily suspend new orders for its nitrogen fertilizers. (PAP Business)
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