Yara Ramped Up 3Q Ammonia Output on Lower Gas Prices

European fertilizer producer Yara has ramped up ammonia production during 3Q with only 6% of it European capacity, or 80,000 tonnes of ammonia, idled, as natural gas feedstock prices decreased, the firm said, cited by Reuters.

• During 2Q23, Yara idled 17% of its European ammonia production capacity.
• Yara said gas costs for the fourth quarter of 2023 were estimated to be $520mn lower than a year earlier. However, high energy prices continue to weigh on European ammonia margins, Yara CEO Svein Holsether said.
• "There is a risk of new nitrogen curtailments if slow European demand continues," the firm said.
• European natural gas demand continues to be below levels seen in previous years. EU gas consumption in the first half if this year stood 18% below the average, largely driven by lower industrial demand, Bruegel data showed.