Saudi Arabian fertilizer producer Maaden aims to continue opportunistic ammonia exports where possible, but a full resumption of ammonia production and exports will only be possible when clear shipping lines return.
Maaden idled its two export-oriented 1.1mn t/yr ammonia units at Ras al-Khair in early March after the war in the Middle East effectively closed the strait of Hormuz, through which all Saudi ammonia is exported. Maaden's third 1.1mn t/yr ammonia unit has continued producing throughout the war for captive use in the firm's downstream phosphate production.
Excluding a brief opening of the strait in June following a now defunct US-Iran peace deal, all non-Iranian ammonia exports from inside the Mideast Gulf had come to a halt.
But fertilizer and related raw material shipments through the key waterway have increased recently compared with earlier in the conflict. Maaden has now exported several ammonia vessels, chief executive Bob Wilt said in a third-quarter earnings call. "Whether that will continue depends on the situation," Wilt said.
The producer has exported over 70,000t since the start of October in three shipments, all of it to India. Another 25,500t shipment appears to have loaded this month, vessel tracking data show.
The exports are "inventory management" and Maaden does not expect to ramp up ammonia production further until export routes through Hormuz are clear. Maaden has removed any ammonia production guidance for the 2026 financial year.
Traversing the strait remains highly risky, with a gas carrier most recently struck in the region at the end of October, according to the FT, shortly after the vessel's addition to Iran's Persian Gulf Strait Authority (PGSA) list of non-compliant vessels. The UK Maritime Trade Operations (UKMTO) reported 11 attacks on vessels in the week ended 4 November, including eight in the strait itself and three inside the Mideast Gulf. Of those attacks, three vessels continued their voyages, three sank and five required assistance.
The vessel that Maaden has been using for its exports was also last week added to the PGSA's non-compliant vessel list. Nonetheless, Maaden will keep an "optimistic eye for increased ammonia sales moving forward", Wilt said.
Maaden's ammonia production increased to 380,000t in the third quarter from 267,000t in the second quarter, suggesting higher run rates at the operating ammonia unit. The increase was largely driven by an increase in phosphate production, Maaden said.
