10 May 2013 17:13 [Source: ICIS news]
LONDON (ICIS)--Poland's Grupa Azoty is keeping a close eye on the growing competition posed by increasing urea exports from China, the second largest European fertilizer producer said on Friday.
Putting out a similar warning to that issued by the largest European fertilizer producer, Norway's Yara International, Grupa Azoty cautioned that between July 2012 and February 2013 Chinese urea exports had more than doubled to 7.2m tonnes.
Chinese urea production levels remained strong, the group added.
Grupa Azoty said it was not anticipating any significant deterioration in its fertilizer business this year, but that if the Chinese urea export growth continued it could become a substantial problem in terms of market competition.
In its first-quarter financial results, released on Thursday, Grupa Azoty said its fertilizer division’s operating profit leapt to zloty (Zl) 286.2m ($90.3m, €69.3m) from Zl 172.3m in the same quarter of 2012.
However, most of the increase stemmed from Grupa Azoty consolidating its results with those of the largest Polish nitrogen producer Zaklady Azotowe Pulawy, which was acquired by Grupa Azoty in January.
($1 = €0.77, $1 = Zl 3.17, €1 = Zl 4.13)
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