China is curtailing fertiliser exports to protect its domestic market, industry sources have told the Reuters news agency, placing additional strain on global markets already grappling with shortages caused by the US-Israeli war on Iran.
In mid-March, Beijing banned exports of nitrogen-potassium fertiliser blends and certain phosphate varieties, sources told Reuters.
According to the news agency, along with existing bans and export quotas for urea, only a handful of fertilisers – notably ammonium sulphate – can be exported from China, which would mean between half and three quarters of what China exported last year is now restricted, potentially up to 40 million metric tonnes, according to a Reuters estimate.
China is among the world’s largest fertiliser exporters – shipping more than $13bn worth of it last year.
Reports of the ban come as shipments of fertiliser through the Strait of Hormuz are stalled. Shipments through the waterway account for roughly one-third of the sea-borne supply.
“This pattern is consistent: China restricts supplies rather than coming to the rescue during global tightness,” Matthew Biggin, a senior commodities analyst at BMI, told Reuters.
“They’re prioritising food security and insulating their domestic market from price shocks,” Biggin said.–Al-Jazeera
