Fertilizer supply disruption or will reduce mass commodity demand
- Author:BESSON
- Release Date:2022-03-22
According to reports, Russia has begun to prohibit ammonium nitrate from the beginning of last month, and decided to suspend exports of other fertilizers. The world's largest fertilizer supply country Russia's fertilizer export may weaken the market's demand for good angle bulk ships.
Luke Hutson, a chemical fertilizer shipping sector, said Russia is the world's second largest potash exporter, about 12 million tons, about one-fifth of the market share, followed by Belarus. Considering Belarusia is also sanctions, the only alternative is Canada, while Canada is the largest potash producer. Potassium fertilizer is usually transported by Panama-type bulk carriers. Urea is the second largest export fertilizer variety of Russia, about 6 million tons per year, 14% market share, if the supply is limited, the impact is not serious, Qatar, Saudi can be used as an alternative choice. The situation of ammonium nitrate is more complicated because ammonium nitrate is used not only for agriculture, but also for mining, Russia exports about 3.5 million tons per year, accounting for 40% of global trade, which is difficult to replace. In order to ensure local supply, Russia is even prohibited from export of ammonium nitrates before March.
Russia said in a report that Russian fertilizer exports increased by 34% year-on-year in 2021, reaching 16.8 million tons. According to the report, due to many crops in Brazil and Europe, the global fertilizer supply interruption will bring pressure to the harvest of these crops.
Luke Hutson, a chemical fertilizer shipping sector, said Russia is the world's second largest potash exporter, about 12 million tons, about one-fifth of the market share, followed by Belarus. Considering Belarusia is also sanctions, the only alternative is Canada, while Canada is the largest potash producer. Potassium fertilizer is usually transported by Panama-type bulk carriers. Urea is the second largest export fertilizer variety of Russia, about 6 million tons per year, 14% market share, if the supply is limited, the impact is not serious, Qatar, Saudi can be used as an alternative choice. The situation of ammonium nitrate is more complicated because ammonium nitrate is used not only for agriculture, but also for mining, Russia exports about 3.5 million tons per year, accounting for 40% of global trade, which is difficult to replace. In order to ensure local supply, Russia is even prohibited from export of ammonium nitrates before March.
Russia said in a report that Russian fertilizer exports increased by 34% year-on-year in 2021, reaching 16.8 million tons. According to the report, due to many crops in Brazil and Europe, the global fertilizer supply interruption will bring pressure to the harvest of these crops.