China Curbing Fertiliser Exports Amidst Global Supply Shortage

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BEIJING: China has implemented significant restrictions on fertilizer exports to prioritize its domestic agricultural needs, further tightening a global market already strained by the conflict in the Middle East. This move is aimed at ensuring national food security and shielding the domestic market from the extreme price volatility currently affecting international trade.

In mid-March, the export of nitrogen-potassium blends and several phosphate varieties was prohibited. These new measures, combined with existing quotas on urea, leave only a few products such as ammonium sulphate available for international shipment. 

Estimates indicate that these restrictions could impact up to 40 million metric tonnes, representing between half and three-quarters of the total volume exported by China last year.

As one of the world's leading suppliers, having exported over $13 billion worth of fertilizer last year, China’s withdrawal from the market comes at a critical time. Logistics are already severely hampered by the situation in the Strait of Hormuz, a waterway that typically facilitates roughly one-third of the world’s sea-borne fertilizer trade.

By focusing on internal supply, the move aims to insulate the domestic sector from the supply shocks caused by the regional war. However, the simultaneous reduction in Chinese exports and the disruption of major maritime trade routes present a significant challenge to global agricultural stability and fertilizer availability.