(Bloomberg) -- Shares of Grupa Azoty SA tumbled after Poland’s biggest chemicals company halted production of nitrogen fertilizers and trimmed output of ammonia because of record gas prices.

“The current situation on the natural gas market that determines profitability of production is exceptional,” Grupa Azoty said in a statement Tuesday. It didn’t say how long the measures would last. The firm’s shares notched up an eighth day of declines, plummeting as much as 10% in Warsaw.

The state-controlled holding tried to avoid curtailing fertilizer production even after European gas prices rose more than four-fold this year amid reduced supplies from Russia. Yara International ASA, Azoty’s larger peer, curbed production last month. Anwil SA, a petrochemical unit of Poland’s biggest refiner PKN Orlen SA, also halted fertilizer output on Monday, citing unfavorable prices.

“Azoty’s announcement is very negative, but expected as production of fertilizers at such high gas prices simply does not pay off,” Krzysztof Koziel, an analyst at Bank Pekao SA, said in emailed comments. He said investors would be on the alert for any aid provided by the government, as well as signs of a rebound in grain prices that could help boost the fertilizer market. 

Grupa Azoty describes itself as the second-biggest producer of mineral fertilizers in the European Union. The company is among the largest buyers of natural gas in Poland, consuming more than 20 gigawatt hours of the fuel every year. 

Polish Agriculture Minister Henryk Kowalczyk told state radio that Azoty has enough inventory to provide fertilizers for the autumn sowing season. He said he hoped the gas market would stabilize because Poland “needs to think about spring sowing” as well.

Azoty shares traded 1.4% lower at 3 p.m. in Warsaw, curbing their year-to-date advance to 5%.

(Updates with Orlen’s unit decision to halt fertilizer output in third paragraph)

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