Global fertilizer market has entered a period of heightened volatility as the Middle East conflict continues to send shockwaves through trade flows,logistics and across all major fertilizer groups.
According to an analysis issued by the Independent Commodity Intelligence Services (ICIS),uncertainty over freight routes,escalating insurance costs and the near-closure of the Strait of Hormuz sharply reduced liquidity and left buyers and sellers struggling to adapt.
Nitrogen saw the sharpest reaction,with urea and ammonia both firming as spot availability tightened,say the experts of ICIS,noting that urea buyers paused ahead of an expected Indian tender,while logistical constraints and supply outages pushed ammonia prices higher across Asia,Europe and the Americas.
Sulphur and sulphuric acid were similarly disrupted. Redirected cargoes,rising freight and disappearing offers in key regions reflected an increasingly stressed supply chain,with players warning that prolonged instability might amplify the squeeze on inventories.
Phosphates strengthened as well,with higher offers,reduced Saudi availability and India absorbing Moroccan volumes at higher prices. China’s tightening export controls added another tension.
Potash remained the outlier–still the most affordable nutrient–but even here higher freight costs began to exert upward pressure. Across the board,market participants agree that the longer the geopolitical turmoil persists,the greater the risk of sustained price escalation and supply tightness.
United News - unews.co.za