ANKARA, April 8. /TASS/. Amid disruptions in fertilizer supply chains caused by the situation in the Strait of Hormuz, Turkey has purchased additional volumes of fertilizers from Russia and is holding talks with Algeria and Morocco, Milliyet reported, citing government and industry sources.
According to the publication, the closure of the Strait of Hormuz has disrupted global fertilizer supply chains and reduced sales by nearly 40%. It has also driven prices higher. In these conditions, Turkey "in addition to existing reserves has recently purchased fertilizers from Russia and is also negotiating with Morocco and Algeria." Current stockpiles are expected to last the country until fall.
Milliyet reported that Turkey’s annual demand for fertilizers is estimated at 7 mln tons, of which 5 mln tons are imported. To balance supply and stabilize price growth on the domestic fertilizer market, certain measures have also been introduced. Fertilizer exports have been suspended, while customs duties on imports of urea, nitrogen and compound fertilizers have been reduced to zero.
The newspaper noted that global fertilizer production amounts to nearly 200 mln tons annually. The Persian Gulf region serves both as a center of annual production of 16 mln tons of fertilizers and as a key transit route for imports and exports of major producers such as China and India. Due to the situation around the Strait of Hormuz, urea prices rose from $482.50 to $720 per ton between late February and mid-March. Prices for various types of fertilizers on Turkey’s domestic market have also increased by 30% to 50%.
Gokhan Uzunoglu, chairman of the Turkish Fertilizer Producers, Importers and Exporters Association, said that current fertilizer stock levels indicate there will be no shortage until fall. However, rising prices will lead to higher costs and an increase in final product prices.