Major European producer LAT Nitrogen has halted calcium ammonium nitrate (CAN), urea and NPK output at its Linz site in Upper Austria to at least the end of this year, citing the economic outlook and uncertain demand for straight-nitrogen fertilizers.
The producer has not provided a fixed timeline for the curtailment but said it aims to resume output as soon as demand and "natural gas developments" allow.
Nitrogen-fertilizer production at the Linz facility has been hampered since mid-September. The producer withdrew from the German nitrogen market on 14 November, citing a surge in gas costs. It carried out maintenance at the facility from mid-September to early November, affecting nitrogen-fertilizer output.
The Linz site is a major source of fertilizers for central and eastern Europe, with CAN 27 production typically around 600,000 t/yr in recent years, according to the latest IFA data. LAT operates a significant distribution network in the region.
The recent rise in European gas prices is pressuring nitrogen-fertilizer output on the continent and compounding lower grain prices and slim demand. Major supplier Yara halted production at its Ferrara urea plant in Italy from 7 November until at least the end of January. The facility has a capacity of 600,000 t/yr of ammonia and 600,000 t/yr of urea.
Argus' day-ahead assessment of natural gas prices at the TTF rose by a fifth in November to close at around $14.5/mn Btu on Friday.
