Fertilizer exports through the Strait of Hormuz have almost recovered to pre-war levels

Fertilizer exports through the Strait of Hormuz have increased significantly since last week, boosting global supplies after the Iran-Iran war blocked large volumes of cargo in the Persian Gulf.

Bloomberg reported, citing ship tracking data and intelligence firm Kpler.

At least 16 ships carrying crop nutrients have left the strait since the US and Iran signed an interim peace deal, analysts said.

Exports are now close to pre-Iran war levels.

Fertilizer exports through the Strait of Hormuz have increased significantly since last week, boosting global supplies after the Iran war blocked large volumes in the Persian Gulf.

Preliminary data for the current week suggests shipments are continuing to recover rapidly.

The agricultural industry is closely watching the pace of the exits. The increase could be gradual, as hundreds of ships carrying a variety of goods are now competing for the right to leave the region.

At least 18 of the more than 40 ships that have run aground since the war began have already left the Gulf. Most of them are headed for Asia.

The Persian Gulf region is home to some of the world’s largest agrochemical plants. About a third of the world’s trade in urea, a key nutrient for crops, is handled through the waterway.

Among the Asian destinations signaled by the ships are China, India and Sri Lanka. India, in particular, is a major importer of urea and diammonium phosphate.

One of the ships is also headed for Brazil, where buyers are stocking up ahead of the soybean planting season, which will begin around September.

Now that supplies have resumed, some of the pressure on supplies should ease, said Pranshi Goyal, senior analyst at consultancy CRU Group.

While it may take weeks for the cargo to reach customers directly, global urea prices have already fallen sharply as concerns about prolonged supply disruptions have receded.

The market’s recovery has eased one of the biggest threats: food price inflation.

It is also believed that other laden vessels may have slipped out of the Gulf undetected. Several stranded vessels have not reported their location for months, perhaps because they switched off their transponders before leaving.

Tags: export, prices, fertilizers, Hormuz