YARIY - Yara plans more cuts to European ammonia production on surging gas prices

Major European fertilizer producer Yara International ( OTCPK:YARIY ) said on Thursday it will cut ammonia production due to soaring gas prices, adding to recent fertilizer output cuts in Europe and raising concerns about the continent's ability to produce enough fertilizer for its crops.

Yara ( OTCPK:YARIY ), which began reducing ammonia production earlier in the year, said it will slash its ammonia utilization to ~35%, with the latest reductions bringing total curtailments to an equivalent of 3.1M tons of ammonia and 4M tons of finished products across its production system in Europe.

Fertilizers require large amounts of energy to be produced, and manufacturers such as Yara ( OTCPK:YARIY ) use gas for the process; natural gas prices have jumped almost 40% in August alone and nearly 300% YTD.

Fertilizer names are higher in early trading: ( CF ) +2.8% , ( MOS ) +2.5% , ( NTR ) +2.4% .

Citing skyrocketing natural gas prices, Poland's biggest chemicals firm said this week it will reduce fertilizer production , and CF Industries said on Wednesday it will temporarily stop ammonia production at its Billingham complex in the U.K .

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