US DOC issues affirmative determinations that UAN imports are unfairly subsidised

HOUSTON (ICIS)–The US Department of Commerce (DOC) has made affirmative preliminary determinations that urea ammonium nitrate (UAN) imports from Russia are unfairly subsidised at rates ranging from 9.66% to 9.84% and UAN imports from Trinidad and Tobago are unfairly subsidised at a rate of 1.83%.

The agency made the determinations as part of countervailing duty (CVD) investigations that are being conducted in response to petitions filed by US fertilizer CF Industries.

As a result, the DOC will impose preliminary cash deposit requirements on imports of UAN from Russia and Trinidad, equivalent to the rates of unfair subsidisation.

It is also conducting concurrent antidumping (AD) investigations of UAN from Russia and Trinidad. Preliminary determinations in the AD investigations are expected in late January.

The CVD and AD investigations began in July 2021 in response to petitions alleging that unfairly dumped and subsidised imports are injuring the domestic UAN industry.

Under the law, both the DOC and the US International Trade Commission (ITC) must make final affirmative determinations to issue an AD/CVD order, which would remain in place for at least five years.

The DOC final determination is scheduled on 11 April 2022 while the ITC final date is set for 26 May 2022. If both agencies give affirmative decisions, then the issuance of order will take place on 2 June 2022.

Currently the largest domestic producer of UAN, CF said in August that UAN was being trading at a significant discount on all upgraded nitrogen products due to unfair trade practices.

Having been watching this situation develop for years, the producer said it had plans to take on an even larger role in the flow of UAN as it anticipated a positive ruling. It further noted that US manufacturing capacity is sufficient to serve domestic demand.

Following the DOC’s decision, the producer said it welcomed the outcome and looked forward to participating in the post-preliminary phase.

“Commerce’s preliminary determinations are an important step towards leveling the playing field for the US UAN industry and its workers,” said Tony Will, CF Industries president and CEO.

According to the US Census Bureau in 2020 Russia imported over 1.1m short tons of UAN valued at nearly $137.8m while Trinidad and Tobago brought in nearly 1m short tons valued at almost $100m.