CRU: UAN Trade Flows Shift in the USA

CRU: UAN Trade Flows Shift in the USA

PR Newswire

LONDON, January 12, 2018

LONDON, January 12, 2018 /PRNewswire/ --

Two new large UAN plants came on stream in the USA over the last two years, resulting in a decline in USA imports, and a dramatic increase in exports. The battle to displace UAN imports will focus on the USA's Eastern Corn Belt as the USA's new production battles for market share with importers.

     (Logo: http://mma.prnewswire.com/media/536199/CRU_Logo.jpg )

USA East Coast imports decline as new capacity comes on stream  

The USA added 2.74 million tonnes per annum of UAN capacity over the last two years, which about matches 2017 USA imports. While imports have declined modestly, USA exports increased dramatically from 0.5 Mt in 2015 to an estimated 1.6 Mt in 2017. There have been shifts in USA imports by region and by source.

In 2014, 40% of UAN imports were on the USA's East Coast (including Mobile, AL as imports from that port go the eastern half of the USA) at over 1.1 million tonnes. For January through October 2017, UAN imports to the East Coast have declined to about 36% of the USA total and we forecast the total East Coast 2017 imports at around 0.9 Mt.

There are several reasons for this. The largest is the two new large plants by CF Industries in Donaldsonville, LA and IFCo in Wever, IA. CF has commissioned a new vessel to ship UAN to tanks on the East Coast, which would compete directly with East Coast imports. In addition, production at IFCo's new plant in Iowa is likely to target East Coast customers via direct rail. The new capacity has also put pressure on UAN prices which declined from an average of $239/st in 2015 to a low of $145/st this past year, putting margin pressure on global marginal producers.

Read the full story: http://bit.ly/USA-UAN-trade-flows  

Read more about CRU: http://bit.ly/About_CRU

About CRU  

CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.

CRU employs over 260 experts and has more than 10 offices around the world, in Europe, the Americas, China, Asia and Australia - our office in Beijing opened in 2004.

When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.

CRU - big enough to deliver a high quality service, small enough to care about all of our customers.

Voltar noticias em Inglês