In 2012 the EU ceased to collect anti-duping duties on imports of ammonium nitrate from Ukraine. Restrictions were imposed in 1996. Now Ukrainian products may be imported to the general import duty of 6.5% of customs value (about 16 euros on the basis of prices on Ukrainian nitrate on FOB Black Sea). Until now, at this rate could export their products is only one manufacturer, and then under the quota of about 30 tons per year, and supplies in excess of this amount for other manufacturers levied an additional fee of 29,26-33, 25 euros per ton. For comparison, the capacity of the European market - about 10 million tons, or about 3 billion euros at current prices.
Ukrainian companies have repeatedly tried to cancel the duties. The absence of fees will make Ukrainian nitrate more competitive in the largest EU markets. There is demand for Ukrainian products are even now, despite the effect of protective duties.
At the time of the introduction of anti-dumping duty Ukrainian importers of ammonium nitrate took around 4% of the market in the EU. "The European market for ammonium nitrate - the largest in the world, it is 20% of global consumption of nitrate. In addition, the European market is a premium in terms of price, and a favorable geographical position of our assets - an important competitive advantage in the struggle for a share of this market."
The opening of the EU market is now profitable for Ukrainian exporters. in July, an excess of nitrate in the domestic market will exceed 100 thousand tons. Present value of ammonium nitrate in Western Europe is 260-280 euros per ton (about $ 330-350). For comparison, the Ukrainian ammonium nitrate is sold at $ 310 per ton (FOB Black Sea) and $ 330 per tonne (DAF border of Ukraine-EU).
But the Ukrainian producers is too early to rejoice. Under the rules of the EU anti-dumping restrictions may be extended in case of appeal by interested parties within two weeks. The European Fertilizer Manufacturers Association (EFMA) promised to file such an application and to extend anti-dumping restrictions on Ukrainian products.
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