March 3 (Reuters) - Grupa Azoty ATTP.WA has suspended accepting new orders for nitrogen fertilizers amid surging gas prices linked to geopolitical instability in the Middle East, the Polish chemical group said on Tuesday.
• Non-European producers in Egypt, Algeria, China and the United States immediately raised fertilizer prices by $45-70 per metric ton in response to the cost surge, Grupa Azoty said.
• Producers in other countries in the region and importers from third countries have also suspended or withdrawn their offers, the company said.
• Grupa Azoty denied halting production, saying its plants are operating at maximum capacity and that all orders placed before the suspension announcement are being fulfilled.
• The company said that it did not pass the higher costs to partners, and that accepting orders at existing prices amid the spike would expose the company to negative consequences.
• The group added that there is no risk to domestic market supply, with existing orders being fulfilled and its authorized distribution network holding stocked warehouses.
• Orders for multi-component fertilizers have not been suspended, as gas costs represent a smaller proportion of their production costs, the company said.
(Reporting by Rafal Nowak in Gdansk; Editing by Matt Scuffham)
((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))