By Ryan Hanrahan
Agri-Pulse’s Oliver Ward reported that “renewed conflict in the Middle East has shuttered urea production in Iran, sending ripples through global fertilizer markets and adding to existing uncertainty around Russian and Chinese supplies, analysts tell Agri-Pulse.”
“Tensions flared between Iran and Israel on Friday when Israel launched what it called a preemptive missile strike targeting Iran’s nuclear program and military leadership. Four days later, both sides are reeling from attacks on key infrastructure and shuttered industries, including in the fertilizer sector,” Ward reported. “‘Iran has shut down seven of its urea and ammonia plants,’ said Mark Milam, senior editor for fertilizers at Independent Commodity Intelligence Services, over concerns that they could be potential Israeli targets.”
“Josh Linville, vice president of fertilizers at commodities analysis firm StoneX, said that attacks on the country’s natural gas infrastructure – which is used in the production of urea – is also keeping operations offline,” Ward reported. “Iran was the third-largest urea exporter in 2024, according to StoneX, with export volumes of around 4.5 million tons – about the size of China’s. The country has a production capacity of around 8.9 million tons a year, Milam added, serving markets in Turkey, Brazil and Argentina, among others. It is also an exporter of ammonia.”
Source : illinois.edu