CF petitions for imports duties on Russia, Trinidad UAN

CF Industries is petitioning the US Department of Commerce and International Trade Commission to implement antidumping and countervailing duties on Russian and Trinidadian UAN imports into the US.

The producer filed its petition today, arguing that Russian producers and exporters EuroChem and Acron, and Trinidad producer Methanol Holdings Trinidad Limited (MHTL) are dumping into the US at margins up to 392pc and 159pc, respectively, citing subsidized natural gas, tax programs — a key feedstock in UAN production.

The petition argues that the imposition of anti-dumping duties on Russian and Trinidadian suppliers into the EU in 2019 redirected shipments to the US, resulting in a surge of UAN shipments to the US between 2018 and 2020.

Russian UAN imports surged by 36pc between 2018 and 2019, according to US trade data, accounting for more than half of total offshore imports in 2019. Meanwhile, imports from Trinidad leapt by 29pc between 2018 and 2020, representing 38pc of total imports in 2020.

CF argues the surge in imports "caused a collapse in the domestic industry's US prices and profitability in 2020".

Nola UAN values in February 2020 fell to the lowest level in Argus price history spanning to 2008, and then trended between $115-120/st fob Nola between July and mid-November.

"For too long, UAN producers in the United States, who are among the most efficient in the world, have competed on an uneven playing field due to dumped and unfairly subsidized imports from Russia and Trinidad," CF chief executive officer Tony Will said. "The duties we are seeking will restore fairness to our highly competitive industry and help ensure that American UAN producers remain a reliable source of fertilizers for American farmers for years to come."

By Connor Hyde