Jolita Macelytė Eltai, head of the Achema Group’s communication department, stated that the resumption of full-capacity production of fertilizer products is directly contingent upon market pricing aligning with primary operational costs. According to Eltai, Achema has maintained partial operational capacity since the autumn of 2021. This reduced output level is attributed to persistent challenges within both the natural gas and broader fertilizer markets, compounded by the escalating burden of ATL costs.
Eltai specified that achieving full production capacity requires that the prevailing market prices for fertilizer adequately cover the core production expenses, specifically citing natural gas and ATL costs as key determinants. She further noted that this operational constraint is not unique to Achema. The head of communications indicated that the majority of fertilizer manufacturers across Europe have faced similar limitations, operating at reduced capacity over several years.
The statement underscores a broader industry vulnerability where high input costs create a significant barrier to maximizing output. Therefore, the ability for major producers to scale up their fertilizer production remains tethered to market conditions that can absorb the elevated costs associated with energy and raw materials. This dependency suggests that sustained price stability and favorable market pricing are prerequisites for the industry to return to pre-challenge levels of manufacturing output.
Topics: #production #fertilizer #costs
