FLORIDA (ICIS)--The recent decision by CF Industries to reduce the selling price of its urea ammonium nitrate (UAN) in the US has in part been driven by the EU investigation into the “dumping” of UAN from the US into Europe, sources said on Tuesday.
On the sidelines of The Fertilizer Institute's (TFI) annual meeting in Orlando, Florida, participants firmly believe that the sudden drop in the value of UAN in North America has been spurred on by the EU’s current probe.
CF Industries has refused to comment on the matter.
In the meantime, sources believe that lower prices will push out the potential for Russian imports arriving in the US, further dampening prices and tipping the global supply/demand balance.
In reaction to the recent developments in North America, one producer said, “CF wants to control the US UAN market. This is a structured move and with urea prices falling, this has forced their hand.”
One UAN trading source described the market as “a disaster,” adding that, "Prices are coming down because of the EU antidumping. There will be no demand in the east or west so they (CF) will need to keep it in the interior.”
“Russia will also need to come here. This market is getting a lot of attention because there was not a big fill.”
The EU has delayed the date that provisional measures will be implemented from 13 March to 13 April.
The TFI event runs from 11-13 February.