Overview
- Urea prices have jumped sharply, with Middle East export values up about 40% to just over $700 per tonne and nearly 60% higher than a year ago, while U.S. market trackers report gains of more than 25% since late February.
- Fertiliser output has been curtailed after gas and shipping disruptions, including a halt at QatarEnergy’s facility described as the world’s largest urea plant, reduced runs at three Indian plants, and shutdowns at four of five factories in Bangladesh, with the U.S. reported roughly 25% short for this time of year.
- The squeeze follows an IRGC adviser’s March 2 claim that the Strait of Hormuz was “closed,” a chokepoint that UNCTAD says carries 13% of traded chemicals such as fertilisers, while data firms report limited safe passages and warn that up to a third of global fertiliser trade could be at risk if disruption persists.
- Import‑dependent farm regions are feeling the strain as planting starts, with a Maryland crop adviser estimating 30–40% of East Coast urea typically arrives via the strait and reporting local nitrogen prices rising roughly $100–$200 per tonne depending on the product.
- Trade and logistics setbacks are mounting, including roughly 400,000 tonnes of Indian basmati rice and about 200 containers of perishables held at ports, and U.S. farm leaders have asked President Donald Trump to protect shipping and suspend fertiliser import duties to ease supply pressures.