UAN prices continued to decline with only Baltic and German prices remaining stable,but all are still tracking the lowest since beginning 2011.With UAN in oversupply,producers are currently cutting back production. Demand on the other hand is currently limited,but traders are expecting an upturn in demand with farmers starting spring application end of February/early March. GrodnoAzot's tender that closed January 19 was scrapped and the producer is going to try sell the volumes domestically as bids at?135-140/mt FOB Klaipedia equivalent were considered too low. The producer will start up its 400,000 mt/year UAN expansion in 2017,lifing its total UAN-32 capacity to 1.2 million mt.However the existing 720,000 mt/year UAN plant is currently running at less than a 75%operating rate due to poor netbacks,according to market sources.
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