FSU outlook. Maxim Seregin. Regional Director Sales and Marketing, region RU and CIS EuroChem

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2 FSU outlook Maxim Seregin Regional Director Sales and Marketing, region RU and CIS EuroChem

3 3 Nitrogen plants (2 in Russia, 1 in Belgium) - 3. MMT (1) of ammonia and 8.9 MMT of total N fertilizer product capacity 3 Phosphate plants (2 in Russia and 1 in Lithuania) MMT of MAP/DAP and JV in China. 5.1 MMT of total P fertilizer & feed product capacity Total annual fertilizer/feed capacity of 13.9 MMT, including c.2 MMT of specialty products Raw materials 1 Severneft-Urengoy 2 Kovdorskiy GOK 3 EuroChem Fertilizers Potash projects 26 EuroChem-VolgaKaliy 27 EuroChem Usolskiy Vertical integration: own raw materials, port terminals, rail stock, construction/repair works, Europe/CIS distribution capacity Production Natural gas operator (Russia) - 1.1bn m 3 of annual capacity (c.25% of EuroChem s annual consumption) Apatite (Russia) - P 2 O 5 -rich (37%-38%) and low-mer (2) content (.57) apatite ore (2.5 MMT per year) covers c.75% of own production needs for all phosphate plants and Antwerp Iron ore as a co-product of apatite mining : up to 5.6 MMT of iron ore (Fe content 63.5%) Logistics assets include transshipment capacity of c.8.8 MMT p.a. in Russia and c.3.5 MMT p.a. in the EU, 2 Panamax vessels, ~ 6,4 own rail stock/depot Novomoskovskiy Azot 5 Nevinnomysskiy Azot 6 EuroChem Antwerpen 7 Lifosa 8 Phosphorit 9 BMU 1 EuroChem Migao Construction of own Potash (K) capacity well underway (targeted capacity of over 8 MMT of KCl per year) Strong operational track record; all EuroChem production facilities are OHSAS-81, ISO 141 and ISO 91 certified Total employees of >22, 214 revenues US$ 5.1bn; EBITDA US$ 1.5bn Logistics Ust-Luga 12 Tuapse 13 Murmansk Sales & distribution 22 Spain 18 Germany 23 France 15 Zug 19 Mexico 24 China 16 Tampa 2 Turkey 25 Italy 14 Sillamae 17 Sao Paulo 21 Singapore 26 Greece (1) MMT : million metric tonnes ; (2) MER : minor element ratio 3

4 Growth through Potash Build leading low-cost potash business Cost efficiency through vertical integration Target self-sufficiency (nat. gas, phosphate rock, potash) Further cost efficiency through vertical integration in logistics Vertical integration enhances cost position, reduces risk / volatility of earnings Value product range Maximize specialty agrochemicals: emphasis on de-commoditization of product portfolio by growing specialty fertilizer grades and industrial products Expand industrial portfolio (melamine, LDAN) Proximity to customers Proximity to customers in key markets via distribution allows to sell at a premium and exploit seasonality patterns. Getting valuable market knowledge from direct end-user contact and increasing competence to inprove plant nutrition efficiency

5 * Excluding Baltic countries

6 kt Production Consumption Consumption with removal losses Removal Consumption Agroproduction Production decrease due to the low internal demand and high logistics costs to export markets Consumption / removal misbalance approx. 3% Low internal demand due to decreased internal consumption and underdeveloped export infrastructure and high logistic costs for AG produce 199/ /2 2/213 N 45% 24% 184% P2O5 15% 7% 222% K2O 18% 11% 168% Agroproduction 17% 58% 183% * Excluding Baltic countries

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8 kt Production Consumption Consumption with removal losses Removal Russia, Georgia and Turkmenistan the only countries witch increased production after collapse of USSR Russia is able to produce up to 2 mln MT of grain, but internal consumption is only 7 mln MT and export infrastructure exists only for 3 mln MT Consumption Agroproduction 199/ /2 2/213 N 35% 22% 16% P2O5 13% 6% 22% K2O 13% 8% 173% Agroproduction 89% 59% 151%

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10 kt Production Consumption Consumption with removal Removal Consumption Agroproduction Production decreased due to limited access to raw materials from Russia (natural gas and apatite) Consumption is at the abnormally low level of 35 kg/ha but still higher than in Russia 199/ /2 2/213 N 75% 19% 392% P2O5 19% 4% 456% K2O 1% 3% 386% Agroproduction 158% 54% 294%

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12 kt Production Consumption Consumption with removal Removal Belarus, Turkmenistan and Uzbekistan with consumption exceeding removal due to the high level of state subsidies Losses in Belarus are extremely high due to the very light soils and high level of the perspiration Consumption Agroproduction 199/ /2 2/213 N 78% 41% 191% P2O5 43% 16% 277% K2O 69% 46% 152% Agroproduction 96% 63% 153%

13 kt Production Consumption Consumption with removal Removal Most drastic example of situation on FSU market Agriculture is the leading economic sector. Sustainable development of agriculture requires fertilizer market development Consumption Agroproduction 199/ /2 2/213 N 1% 5% 21% P2O5 5% % 48% K2O Agroproduction 116% 8% 145%

14 Fertilizer Form Application Period Tailored NPK formulas Nutrients synergy Liquid vs. dry Effective nitrogen forms Inhibitors and slow release Microbiological products Optimal application period Fractional application vs. reduced applications Weather monitoring Ballast elements removal Autumn vs. Spring Soil PH control Application Rates Application methods Removal / application balance Limiting factor calculation Soil tests Forecrop Differentiated application Crop price impact Top dress vs. work in Foliar and fertilization Combining with organic matter application Source - IPNI