Phosagro announces phosphate fertilizer cutbacks
Another large producer of phosphate fertilizers announced it is cutting back output in the first quarter of 2012. Phosagro, Russia’s largest phosphate fertilizer producer, made the announcement a day after Mosaic Company publicized it plans cutbacks of its phosphate fertilizer production by 250,000 metric tons in the first quarter of 2012.
Phosagro announced it will reduce production of diammonium phosphate and monoammonium phosphate, known as DAP and MAP, but it did not specify how much it will cut back, according to a statement from the company. However, Brownfield Ag News reported Phosagro plans to reduce production by 18 percent.
“Recent declines in MAP and DAP spot prices are speculative and do not reflect the real economic fundamentals,” Maxim Volkov, chief executive officer of Moscow-based Phosagro, said in a statement.
Bloomberg News reported that Mosaic says the production cutbacks are a result of fertilizer prices becoming “disconnected” from the “underlying agricultural fundamentals” and aren’t sustainable.
However, Phosagro officials also said that they expect fertilizer demand to be strong this season and prices will likely rebound once planting season begins.
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