China Limits Fertilizer Exports Amid Global Supply Shortage
China restricted fertilizer exports to ensure domestic food security as global prices rise. Experts expect these curbs to remain in place until at least August.
China is tightening controls on fertiliser exports to protect its domestic market, according to industry sources, a move that adds significant pressure to global markets already struggling with shortages linked to the conflict involving the United States, Israel, and Iran. With shipments through the war-blocked Strait of Hormuz accounting for roughly one-third of the sea-borne supply, the decision by one of the world's largest exporters—which shipped over $13 billion in product last year—further crimps global availability.
In mid-March, Beijing restricted the export of nitrogen-potassium fertiliser blends and various phosphate types. These new measures, which follow existing export quotas for urea, mean that only a handful of products, such as ammonium sulphate, can now be shipped abroad. Analysts estimate that between 50% and 75% of last year's export volume, potentially up to 40 million metric tons, is now restricted. Major producers, including China XLX Fertiliser Ltd., are navigating these tightened constraints as the government prioritizes domestic food security.
