China imposes export restrictions on some fertilizer producers
- September 7, 2023
- Posted by: Quatro Strategies
- Categories: China, Sanctions & Regulation
China has taken the step of instructing some fertilizer producers to suspend urea exports as a response to rising domestic prices. This move is expected to limit supplies and lead to increased costs for farmers in major importers like India.
Prominent Chinese fertilizer producers have ceased entering into new export agreements since the start of the month as per government orders. Currently, these restrictions pertain solely to urea.
Urea prices experienced a nearly 50% surge on the Zhengzhou Commodity Exchange during a seven-week period from mid-June to the end of July. However, prices have been subject to fluctuations since that time and are currently approximately 11% lower this week.
As the world’s leading producer and consumer of urea, China’s decision to reduce exports has the potential to constrict global supplies and drive up prices. Some of the key export markets for Chinese urea include India, South Korea, Myanmar, and Australia.
While at least one producer, CNAMPGC Holding Co., has made public announcements about its intention to curtail fertilizer exports to maintain stable supplies and prices.
These restrictions introduce another layer of volatility to the global agricultural market, which has already grappled with extreme weather events, export constraints in India, and the conflict in Ukraine involving Russia.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Europe outbids Asia for LNG as gas prices spike after Russian supply cut
The recent diversion of liquefied natural gas (LNG) cargoes from Asia to Europe illustrates the volatility of global gas markets, driven by geopolitical tensions and supply disruptions. Over the past few days, at least five LNG shipments originally destined for Asia changed course to Europe in response to higher European gas prices…
Saudi Aramco to expand Fadhili gas plant capacity with $7.7 billion investment
Saudi Aramco has announced contracts worth $7.7 billion to expand the processing capacity of its Fadhili gas plant to 4 billion standard cubic feet per day. Currently, the plant can process 2.5 billion standard cubic feet per day, and the expansion is scheduled for completion by November 2027…
Berlin drops gas levy to restore industrial competitiveness
Germany’s conservative CDU/CSU and the Social Democrats (SPD) have reached a preliminary agreement to scrap the gas storage levy for all consumers, aiming to ease the burden of high energy prices that have weighed heavily on households and industry. The levy, introduced in 2022 following Russia’s abrupt gas supply cuts, was intended to help finance the costly shift to alternative sources. However, it became a source of tension both domestically and with Germany’s European neighbors.
Originally, the measure was meant to distribute the financial burden more widely across the EU, but under pressure from neighboring countries, Berlin limited the levy to German consumers only. That decision fueled discontent at home, where businesses and consumers alike have faced significantly higher gas costs compared to other countries.