𝗙𝗲𝗿𝘁𝗶𝗹𝗶𝘀𝗲𝗿 𝗦𝘂𝗽𝗽𝗹𝘆 𝗗𝗲𝗹𝗮𝘆𝘀 𝗗𝗲𝘀𝗽𝗶𝘁𝗲 𝗛𝗼𝗿𝗺𝘂𝘇 𝗥𝗲𝗼𝗽𝗲𝗻𝗶𝗻𝗴
Fertilizer prices and availability will take three to four months to normalize. Industry executives expect delays despite a potential US-Iran agreement to reopen the Strait of Hormuz.
Key supply facts:
- Gas plants in Qatar must return to normal operations to stabilize ammonia prices.
- Ammonia prices might stabilize in one to two months.
- Sulphur prices remain high due to supply shortages and high industrial demand.
- Wholesale sulphur prices range between $815 and $1,200 per metric tonne.
- India has enough urea stocks for the kharif season.
- DAP supplies face pressure from the global sulphur shortage.
Production and logistics challenges:
- Restarting fertilizer plants requires time for natural gas supply restoration.
- Petroleum derivatives used in production depend on oil refineries resuming full operations.
- Reopening shipping lanes causes vessel queues and port congestion.
- Facilities require safety inspections and maintenance before reaching full capacity.
- Insurance approvals and delayed berthing affect cargo delivery.
The Strait of Hormuz carries a large share of global oil and natural gas trade. A formal agreement in Switzerland could allow Iran to resume oil sales and reopen the waterway. Experts estimate traffic could return to pre-war levels within 30 days. Benefits to the fertilizer industry will take months to reach production and shipping networks.
Source: The Times of India