CF Industries, Acron and Eurochem among worst hit by new EU anti-dumping duties on UAN

The European Commission published this week provisional anti-dumping duties for imports of UAN from Russia, Trinidad and Tobago and the USA. UAN is a liquid fertilizer solution of ammonium nitrate and urea with a nitrogen content of 28-32%, subject to region.

The proposals will affect US UAN suppliers, such as CF Industries, as well as Russian producers, including Acron and Eurochem. Basis latest summer pricing in the French markets, the anti-dumping tariffs imply very low netbacks from European business below $110pt fob for both US and Russian producers.

A complaint from the European industry trade body, Fertilizers Europe, prompted the anti-dumping investigation which commenced 13 August 2018. The complaint argued that high rates of dumping were taking place, causing injury to the industry in the European Union. It further argued that dumping was likely to continue due to new capacity developments and natural gas pricing in Russia.

Customs authorities in the European Union are now directed to take steps to register imports during the period of pre-disclosure and ahead of definitive measures coming into force in October. All interested parties are now invited to comment on the provisional duties.

The rates of the provisional anti-dumping duty expressed on the CIF Union border price, customs duty unpaid, shall be as follows:

• Russia – PJSC Acron – 31.9%
• Other Russian suppliers – 39.3%
• Trinidad and Tobago – 16.3%
• USA – 22.6%

Duties are in addition to existing 6.5% duties on US and Russian UAN imports.

The five main markets for UAN in the European Union in 2018 were France, Belgium, the UK, Spain and Germany with these countries importing 3.5m. tonnes of UAN. The USA, Trinidad and Russia supplied 1.51m. tonnes (43%). Of this, the USA supplied 0.91m. tonnes, Trinidad 0.36m. tonnes and Russia 0.24m. tonnes. France, the biggest market by far, took 2.24m. tonnes in 2018 with the USA at 0.73m. tonnes, Trinidad 0.2m. tonnes and Russia 0.15m. tonnes, a combined 1.08m. tonnes and 48% of the total.

The news will clearly be an unwelcome development for non-EU producers and comes at a time when global UAN values are under pressure. US Gulf values have fallen by more than $40ps ton since the beginning of the year, while near-term prices continue to ease in France as current season demand wanes.

Further information and market analysis is available via the Profercy Nitrogen Service.

Official documentation was published by the European Commission on 22 March and is available here.

By Chris Yearsley, Editor, Profercy Nitrogen