Overview
- Shipping through the Strait of Hormuz has slowed sharply following the Iran conflict escalation, constraining LNG and tanker traffic that supports global nitrogen fertilizer trade.
- About 30% of traded urea, roughly one‑third of global LNG exports, and around 20% of traded ammonia transit the strait, concentrating supply risk in a single chokepoint.
- Market benchmarks have jumped since early March, with urea up about 27%, ammonia 16%, phosphate 6% and sulphur 7%, as some buyers pause purchases.
- Production has been curtailed in the Gulf and India, with QatarEnergy halting output at the QAFCO urea site and an industry official reporting reduced urea runs at several Indian plants after LNG from Qatar fell.
- India reports record fertilizer inventories of 177.31 lakh tonnes, says 9.8 million tonnes are already imported with 1.7 million tonnes due, prioritizes gas for the sector and advances plant maintenance, yet acknowledges prolonged disruption could tighten supplies into kharif.