(MENAFNEditorial) LONDON, July 26, 2017 /PRNewswire/ --
Major investments in the US by CF Industries and OCI have added 3.1 million tonnes of UAN capacity. This has allowed the US to reduce its dependency on imports of UAN and increase its share of global exports.
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This change was anticipated but the UAN market now has to adjust to the structural change. The current low-price environment has squeezed the margins of traditional exporters and now most of the world's low-cost production is operating in the largest end-user market.
New UAN capacity pressures global markets
The investment by CF Industries in Donaldsonville resulted in the US exporting more than 1 million tonnes of UAN in 2016; its largest annual exports. CRU's 2017 forecast is for further but less substantial growth in 2017. CF has expanded its Donaldsonville port and built new UAN production capacity which enables it to increase exports.The Donaldsonville UAN plant will increasingly be dedicated to supplying product to export.
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