Eurochem starts offering potassium nitrate from new production facility

Fertilizer producer Eurochem has started offering potassium nitrate (NOP) to customers from its new production facility at the Nevinnomysskiy Azot site in Russia, multiple sources said.

"We have started commercial production and will continue to ramp-up over the next months," a source at Eurochem told S&P Global Commodity Insights Sept. 17.

Eurochem started commissioning works on the new production site in mid-March with an aim to produce 70,000 tonnes of mostly water-soluble fertilizers such as NOP.

Eurochem is understood to be offering the product to its customers in all key markets including North America, South America, Europe and North Africa.

"It's not [a lot of product] for all their market. I imagine and hope that they send more to [other] profitable markets than Spain," one distributor source said.

Another European distributor said they had received offers of Eurochem NOP with very competitive prices. Price details, however, remained unclear.

The production comes online at an opportune moment as demand for NOP worldwide remains high while supplies remain limited.

NOP offers in Spain from other producers were heard between Eur900-910/t bagged delivered with indications that a large producer was looking at increasing prices next week.