CF Industries Holdings, Inc. Welcomes Commerce Department’s Affirmative Preliminary Antidumping Duty Determinations Concerning UAN from Russia and Trinidad and Tobago

Rhea-AI Summary

CF Industries Holdings, Inc. welcomed the U.S. Department of Commerce's affirmative preliminary determinations in its antidumping investigations regarding imports of urea ammonium nitrate (UAN) from Russia and Trinidad and Tobago. These determinations reveal that Russian UAN is dumped at rates between 9.15% and 127.19%, while Trinidadian UAN faces a 63.08% dumping rate. The U.S. already applies cash deposit requirements for unfairly subsidized imports from these nations. CF Industries initiated these investigations, aiming to protect the U.S. UAN industry and ensure farmers have access to reliable domestic suppliers.

Positive

• Affirmative determinations by Commerce may enhance U.S. market conditions for domestic UAN producers.
• Protection against unfair trading practices could stabilize UAN prices and availability for U.S. farmers.

Negative

• Potential increase in market prices for UAN due to imposed cash deposit requirements.
• Risk of retaliatory measures from Russia or Trinidad and Tobago affecting future trade relations.

DEERFIELD, Ill.--(BUSINESS WIRE)-- CF Industries Holdings, Inc. today welcomed the U.S. Department of Commerce’s (“Commerce”) affirmative preliminary determinations in its antidumping duty (“AD”) investigations of imports of urea ammonium nitrate (“UAN”) from Russia and Trinidad and Tobago (“Trinidad”). This follows Commerce’s affirmative preliminary countervailing duty (“CVD”) determinations for UAN from Russia and Trinidad, issued in November 2021.

“Commerce’s affirmative preliminary antidumping and countervailing duty determinations not only address unfair trade practices that have harmed the U.S. UAN industry and its workers, but also help ensure that this vital product remains readily available to U.S. farmers from reliable domestic suppliers,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “We appreciate the thorough, fact-driven investigations conducted by Commerce professionals and their impartial application of U.S. law. We look forward to participating in the post-preliminary phase of these investigations.”

Commerce found that Russian UAN imports are dumped (i.e., sold at less than fair value) into the U.S. market at rates ranging from 9.15% to 127.19%, and that Trinidadian UAN imports are dumped at a rate of 63.08%. As a result of these determinations, Commerce will impose cash deposit requirements on imports of UAN from Russia and Trinidad, based on the preliminary rates of dumping. Additional CVD cash deposit requirements are already in place based on Commerce’s previous preliminary finding that Russian UAN imports are unfairly subsidized at rates ranging from 9.66% to 9.84%, and that Trinidadian UAN imports are unfairly subsidized at a rate of 1.83%.

Commerce initiated the AD and CVD investigations in July 2021, in response to petitions filed by CF Industries Holdings, Inc. alleging that unfairly dumped and subsidized imports of UAN from Russia and Trinidad are injuring the U.S. UAN industry. Under U.S. law, both Commerce and the U.S. International Trade Commission (“ITC”) must make final affirmative determinations in order for Commerce to issue an AD/CVD order, which would remain in place for at least five years. Commerce and the ITC are expected to make final determinations in the summer of 2022.

About CF Industries Holdings, Inc.

At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our nine manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. CF Industries routinely posts investor announcements and additional information on the Company’s website at www.cfindustries.com and encourages those interested in the Company to check there frequently.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005920/en/

Media

Chris Close

Director, Corporate Communications

847-405-2542 – cclose@cfindustries.com

Investors

Martin Jarosick

Vice President, Investor Relations

847-405-2045 – mjarosick@cfindustries.com

Source: CF Industries Holdings, Inc.

FAQ

What did CF Industries announce regarding UAN imports from Russia and Trinidad?

CF Industries announced that the U.S. Department of Commerce's investigations found that UAN imports from Russia and Trinidad are being dumped at significant rates, leading to cash deposit requirements.

What are the dumping rates for UAN from Russia and Trinidad?

Russia's dumping rates range from 9.15% to 127.19%, while Trinidad's rate is 63.08%.

When did the U.S. Department of Commerce start the investigations for UAN from Russia and Trinidad?

The investigations were initiated in July 2021.

What is the expected outcome of the investigations conducted by the U.S. Department of Commerce?

If final determinations are positive, the Department of Commerce may issue antidumping and countervailing duty orders lasting at least five years.

How does CF Industries view the Department of Commerce's preliminary determinations?

CF Industries appreciates the thorough investigations and believes these determinations will help protect the U.S. UAN industry.