30 December 2011 16:04 [Source: ICIS news]
LONDON (ICIS)--PhosAgro plans to cut its production of diammonium phosphate (DAP) and monoammonium phosphate (MAP) fertilizers in the first quarter of 2012 in response to declining spot prices, the Russian producer said on Friday.
PhosAgro said it would cut output of DAP and MAP by 18% compared with the 2011 first quarter. The company did not disclose what its 2011 first-quarter production was in terms of metric tonnes.
"We believe that recent declines in MAP and DAP spot prices are speculative and do not reflect the real economic fundamentals,” CEO Maxim Volkov said in a brief statement.
“We expect that farmer economics and agriculture fundamentals will support higher prices and higher demand for these fertilizers ahead of the spring planting season,” Volkov said.
Volkov added that PhosAgro has a “flexible production model” that allows it to switch production to NPK (nitrogen, phosphorous, potassium) fertilizers.
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