OREANDA-NEWS. February 01, 2011. Stirol, the major Ukrainian fertilizer producer controlled by Ostchem Holding (Dmitriy Firtash), has resumed ammonia nitrate (AN) production after 18-month halt, the UkrNews reported Jan 28. It is also indicated that Stirol and RivneAzot, another Ukrainian nitrogen fertilizer producer affiliated with Ostchem, are expected to supply 80 kt of AN to customers in Feb 2011.

Millennium Capital considers the news as POSITIVE for the company. Although Stirol had postponed the launch of AN workshop several times over the previous three months, we expect the plant to gain profit from the seasonal increase in demand in Feb-Mar. The price of AN on the domestic market has recently increased up to USD  385 per ton, which is 11% above the export prices. Meanwhile, an extra volume of AN supplied by Stirol on the domestic market will likely stabilize domestic prices in Feb.