The EU is mulling over enforcing anti-dumping duties on UAN (urea ammonium nitrate) fertilizer imports from Trinidad & Tobago, Russia, and the United States, as per an official release.
On 29 June, a complaint was received by the European Commission—the executive body of EU—from industry body Fertilizers Europe that claims UAN imports are being thrashed into the European market, “thus causing damage” to the industry of 28-country bloc.
Fertilizers Europe, as per the official transcript, asserts the imports have had “an off-putting influence on the level of prices implemented and the market share” possessed by EU manufacturers, which it stated had resulted in considerable adverse outcomes on the overall financial situation and performance of domestic manufacturers.
The industry group particularly highlighted the Russian UAN imports, as they enjoy decreased natural gas prices for production, it stated, when evaluated against the European rivals. The Commission said, “As per the proof in the grievance, gas—possessing for substantially over 17% of the price of production of the product under examination—is subject to double cost in Russia.”
The Brussels-based body intends to look into UAN imports from the 3 nations in the duration between July 2017 and June 2018, whereas “assessment of injury” will operate from 1 January 2015 to the investigation phase’s end. Representatives from manufacturers and interested parties are invited by the organization from all nations entailed to submit data, as well as evidence against and for the proposed legislation.
Distinctly, the European fertilizers market has strongly reacted to the news, with producers and traders similar swapping views. A trader said, “Crazy circumstances, particularly where the EU cannot manufacture adequate [UAN] of its own and depends on trade in for the balance. It is more regarding EU manufacturers shielding their pockets.”
The European fertilizer makers have been bearing high production prices recently, mainly on elevated natural gas costs.