LSB Industries reported third-quarter net income of $16.3 million, more than double the prior-year figure, driven by stronger ammonia pricing and a deliberate shift in product mix. The company reduced UAN output in favour of ammonium nitrate, which is in high demand from mining customers for use in explosives.
Ammonia netbacks rose 32% year-on-year to $528 per ton, reflecting both tighter nitrogen markets and the more favourable economics of ammonium nitrate sales compared with UAN during the quarter.
The results point to continued strength in nitrogen fertiliser and industrial ammonium nitrate markets, with producers able to flex output between agricultural and industrial end-uses depending on relative margins. For buyers, this suggests nitrogen supply allocated to mining and industrial explosives demand could tighten UAN availability or support prices if producers continue favouring AN output.
Related on gidex.com: urea supply · the fertiliser desk · buying through the desk
Original note by GIDEX Group based on reporting by Fertilizer Daily. Written up by the GIDEX market desk — see how these notes are made. Not investment advice.
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