Russian fertilizer allowed into the United States (Washington lifted duties on urea and ammonium nitrate)

US unexpectedly canceled the protective duties on ammonium nitrate and urea from Russia. However, the first decision will affect only “Uralkhim”, other manufacturers had to compromise with Washington, agreeing to an annual US Department of Commerce to prove the absence of dumping. According to experts, the opening of the market will allow Russian companies to diversify sales of fertilizer, but soon in the United States may appear oversupply due to input power.


DOC canceled the anti-dumping duties on imports of ammonium nitrate (ammonium nitrate, the main component of nitrogen fertilizers) from the Russian Federation, the official publication of Federal Register. Since 2010, the fee is 253.98%, every five years, the Ministry of Trade shall review the matter. The next revision of the procedure launched 1 July: during the month of stakeholders to send their comments controller. But this time no one would insist on the investigation, and the agency canceled the anti-dumping duty. The decision will come into force on 20 August.

This relief will affect mainly “Uralhima” as DOC has already canceled the fee for “Akron” and “EuroChem” in November, 2014. These companies need to annually go through the administrative procedures and to prove the absence of ammonium nitrate sales at dumping prices in the US market. At the same time for the Russian producers it was determined the minimum price at which they could supply the ammonium nitrate in the United States and a quota of 150 thousand. Tonnes. The “Akron”, “Kommersant” noted that, although against the company and do not apply protective measures, it provides non-critical volumes in the United States. In “Uralhima” “Kommersant” reported that the company “takes a positive step that the US government” and cancellation fees will increase cooperation with customers from the USA.

Prior to that, “Uralkhim” repeatedly tried to break into the US market, but to pass the procedure of proving the absence of dumping would not fundamentally. The Company believes it is too time-consuming and costly, but also afraid of failure because of the specific calculation method for the United States. “Uralkhim” planned to build a bypass road and tried to organize supplies to the United States of sulfate of ammonium nitrate (sulfonitrata) 30: 7, which is composed of double salts of ammonium nitrate and ammonium sulphate (production capacity of the company - about 100 thousand tons.). In 2012, “Uralkhim” sent to the US Department of Commerce to request the non-use of protective duties sulfonitratu, saying that it was a separate product. But the company denied the regulator first and then the Court.

In addition, the US Department of Commerce, according to preliminary results of the review of anti-dumping duty on urea rate resets to “Fosagro-Cherepovets” (included in “Fosagro”). Regulator considered the activities of companies from 1 July 2014 to 30 June 2015. The final decision to publish within 120 days. The duty on urea in 64.93% work in almost 30 years: the US installed it in 1987, even for the USSR. At the end of 2011 to the end of its next revision, it was decided to keep. Supply urea from Russia only “Eurochem” could be in the US, which resets DOC duty in 2008.

Konstantin Yuminov from Raiffeisenbank said that the abolition of duties on ammonium nitrate - a moderately positive for Russian producers, and zero dumping margin for urea - good news for “Fosagro”. According to him, the high competition in the market of nitrogen fertilizers, an excess capacity and a significant fall in prices over the last year the emergence of opportunities to direct products in the US will partially diversify sales. But this market is highly competitive, and US manufacturers in the coming years introduced a large number of new facilities, which will reduce imports, he warns. Now the largest importers of urea in the United States are China, Canada and the Middle East. According to Konstantin Yuminov, India start anti-dumping investigation concerning ammonium nitrate from Russia and other countries that the establishment of fees can remove the positive effect of the lifting of the ban in the United States.

15 August 2016

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