Ukraine imposes antidumping duties on Russian ammonium nitrate

Ukraine imposed an 11.91% antidumping duty on ammonium nitrate imports from Russia for five years, Interfax reported yesterday. Two Russian companies, Dorohobuzh (Akron holding) and Eurochem were granted preferential rates, 9.76% and 10.78% respectively, as “they cooperate with Ukrainian Ministry of Economic Affairs”, the release says. The investigation revealed that in 2006 Russian ammonium nitrate had been selling at a 11.91% dumping margin. Vladimir Nesterenko: The news is positive for domestic producers, which supply around 1/2 of produced ammonium nitrate to the local market, and after gas price hike in 2006 started experiencing pressure from their Russian rivals, which benefited from feedstock cost advantage: in 2006 imports of ammonium nitrate from Russia increased about 3.5x. If gas price for Russian producers catches up with the market by 2011, as planned by Gazprom, the duty may be removed earlier than five years.