In anticipation of spring planting agricultural departments dictates regulated prices for fertilizers, which will be the subject of controversy with chemists. Price of issue at least 50 million UAH.
Cabinet again taken to regulate barely fledged market of mineral fertilizers. This intention will meet serious resistance producers of ammonium nitrate. In the first place, “Rovnoazot” and Cherkassy Azot, whose share in the domestic market supply exceeds 60%. That is what the fertilizers farmers intend to buy more just in the first half - 1,080 million tonnes.
“We propose to set the price of ammonium nitrate at the level of 2200 UAH. Per ton,” - said a source in the Ministry of Agriculture. “We do not agree with this price, because the external market dictates its own condit1000ions, and there is a fertilizer more expensive. In case of the offered price, we will have no more than 5-7% of profitability,” - said the general director of Rovnoazot “Michael lost his way.
He also is concerned that farmers, despite the approach of seasonal purchases, showing low activity. Apparently, farmers expect lobbied fixing prices, and promised Prime Minister grants for the purchase of fertilizers in the amount of 300 million UAH. throughout 2010. In the meantime, apparently, nitrate buys foreign consumers and domestic traders. If it goes further, the demand for fertilizer will again be postponed, as it was last year. But the delay in the purchase of fertilizers is unlikely to play into the hands of farmers. For the second quarter of the price of gas can be significantly enhanced in that fertilizer producers may respond stopping production or significant price increases. In addition, before the presidential election is unlikely, and to receive subsidies from the state budget, which is still not adopted.
Thus, both parties - and chemists, and farmers found themselves in a rather sticky situation. On the one hand fertilizer producers have received the expected support for the government to reduce product cost. Recall the price of gas in the first quarter of 2010 for chemists is $ 255 per 1 thousand cubic meters. m on the latch plants instead of $ 400 expected. Last year, this benefit fertilizer producers received in exchange for a promise to adhere to the value of nitrate in supplying the domestic market of 2100 UAH. ton. Disagreement with the position of the Ministry of Agriculture on prices in the current year, a risk that the Cabinet may deprive the chemistry of these preferences.
On the other hand, agreement on the conditions of Ministry of Agriculture chemists deny additional earnings right now, because the market is on the rise. Thus, the present value of nitrate in external markets is about $ 240 per tonne, inclusive of VAT is equivalent to the price of domestic sales in 2300 amounting to UAH. ton. Thus, now the loss of chemists in the case of nitrate sales to the domestic market will amount to 100 UAH. tonne, if they agree to make concessions to farmers. In the future, this amount will increase further, since the peak of the acquisition of ammonium nitrate falls on February-March. By that time, farmers will have time to buy at least 500 tons of ammonium nitrate, and chemists will lose at least 50 million UAH.
What will end the negotiation process between Minpropolitiki and the Ministry of Agriculture on this issue is difficult to say yet. The arbitrator in this debate will be the Ministry of Economy. The decision itself may appear as early as next week. But a source in the Ministry of Industry announced its readiness to assist producers of fertilizers. “We will stand up to his end, because chemistry is the minimum return, it is impossible to break this trend, not to lose the industry” - he said.
MICEX today will try to get closer to the mark of 1400 points
Publicly traded on the market of Russia can be expected to break up on 0,5-0,75%, due to optimistic external background
“Sibur” and Japanese “Yokogawa Electric CIS” agreed on a three-year supply of equipment for automation of petrochemical industries
Forex: euro again antihero, pierced lows in July
A single European currency in today”s Asian session, the newly updated many months lows against the U.S. dollar
Forex Market 28/01/2010
Dollar exchange rate is saved without changes - a review of cash markets
Nabucco fill from Azerbaijan and Iraq
Soros has supported the banking reforms Obama
Ministry of Agriculture lobbies for cheaper fertilizer
In anticipation of spring planting agricultural departments dictates regulated prices for fertilizers, which will be the subject of controversy with chemists. Price of issue at least 50 million UAH.
Cabinet again taken to regulate barely fledged market of mineral fertilizers. This intention will meet serious resistance producers of ammonium nitrate. In the first place, “Rovnoazot” and Cherkassy Azot, whose share in the domestic market supply exceeds 60%. That is what the fertilizers farmers intend to buy more just in the first half - 1,080 million tonnes.
“We propose to set the price of ammonium nitrate at the level of 2200 UAH. Per ton,” - said a source in the Ministry of Agriculture. “We do not agree with this price, because the external market dictates its own condit1000ions, and there is a fertilizer more expensive. In case of the offered price, we will have no more than 5-7% of profitability,” - said the general director of Rovnoazot “Michael lost his way.
He also is concerned that farmers, despite the approach of seasonal purchases, showing low activity. Apparently, farmers expect lobbied fixing prices, and promised Prime Minister grants for the purchase of fertilizers in the amount of 300 million UAH. throughout 2010. In the meantime, apparently, nitrate buys foreign consumers and domestic traders. If it goes further, the demand for fertilizer will again be postponed, as it was last year. But the delay in the purchase of fertilizers is unlikely to play into the hands of farmers. For the second quarter of the price of gas can be significantly enhanced in that fertilizer producers may respond stopping production or significant price increases. In addition, before the presidential election is unlikely, and to receive subsidies from the state budget, which is still not adopted.
Thus, both parties - and chemists, and farmers found themselves in a rather sticky situation. On the one hand fertilizer producers have received the expected support for the government to reduce product cost. Recall the price of gas in the first quarter of 2010 for chemists is $ 255 per 1 thousand cubic meters. m on the latch plants instead of $ 400 expected. Last year, this benefit fertilizer producers received in exchange for a promise to adhere to the value of nitrate in supplying the domestic market of 2100 UAH. ton. Disagreement with the position of the Ministry of Agriculture on prices in the current year, a risk that the Cabinet may deprive the chemistry of these preferences.
On the other hand, agreement on the conditions of Ministry of Agriculture chemists deny additional earnings right now, because the market is on the rise. Thus, the present value of nitrate in external markets is about $ 240 per tonne, inclusive of VAT is equivalent to the price of domestic sales in 2300 amounting to UAH. ton. Thus, now the loss of chemists in the case of nitrate sales to the domestic market will amount to 100 UAH. tonne, if they agree to make concessions to farmers. In the future, this amount will increase further, since the peak of the acquisition of ammonium nitrate falls on February-March. By that time, farmers will have time to buy at least 500 tons of ammonium nitrate, and chemists will lose at least 50 million UAH.
What will end the negotiation process between Minpropolitiki and the Ministry of Agriculture on this issue is difficult to say yet. The arbitrator in this debate will be the Ministry of Economy. The decision itself may appear as early as next week. But a source in the Ministry of Industry announced its readiness to assist producers of fertilizers. “We will stand up to his end, because chemistry is the minimum return, it is impossible to break this trend, not to lose the industry” - he said.
MICEX today will try to get closer to the mark of 1400 points
Publicly traded on the market of Russia can be expected to break up on 0,5-0,75%, due to optimistic external background
“Sibur” and Japanese “Yokogawa Electric CIS” agreed on a three-year supply of equipment for automation of petrochemical industries
Forex: euro again antihero, pierced lows in July
A single European currency in today”s Asian session, the newly updated many months lows against the U.S. dollar
Forex Market 28/01/2010
Dollar exchange rate is saved without changes - a review of cash markets
Nabucco fill from Azerbaijan and Iraq
Soros has supported the banking reforms Obama