Urea
The domestic market was focused on granular urea availability after supply was cut from the Persian Gulf via the Strait of Hormuz. US and Israeli strikes on Iran in the early hours of 28 February saw a retaliatory spread of attacks across the Middle East, unleashing chaos and sending global urea prices soaring.
Argus last assessed granular urea at A$880-1,000/t fca Geelong.
Prompt supply along the East Coast is very tight, with most of the tonnes on shore already allocated to existing contractual requirements. There are likely several organised urea vessels that are unable to be loaded or enter the Strait of Hormuz. There is enough urea to cover demand through to mid-April, multiple suppliers told Argus, but more is needed past this.
There are 229,000t of urea in transit to Australia, vessel tracking data from Kpler show.
Phosphates
Domestic demand for MAP/DAP picked up in the wake of the US/Iran war because of restricted supply from Saudi Arabia. Supplies along the East Coast of Australia are low and at least one supplier is sold out of MAP.
There are 408,000t of MAP/DAP and other phosphorous fertilisers in transit to Australia, Kpler data show.
Australian urea faces supply risk on Iran conflict
The Australian urea market is at risk of short supply and domestic prices are expected to rise ahead of peak seasonal demand, in the aftermath of the US and Israeli attack on Iran.
Australian fertiliser suppliers have received increased enquiries from local buyers reacting to the escalated conflict in the Middle East. Domestic prices for urea, ammonium sulphate, and ammonium phosphates are already increasing, suppliers said.
Australia's Dyno Nobel to sell Phosphate Hill plant
Australian explosives company Dyno Nobel will sell its 769,000 t/yr Phosphate Hill fertiliser plant to Australian energy and resources company Mayfair's wholly owned subsidiary Ryowa II GPS for up to A$100m ($70m), the company said on 9 March.
Commentary and pricing supplied by Argus Media
Disclaimer: The information provided in this report is general in nature and is intended for informational purposes only.