Nitrogen

Thailand's fertilizer supply ample as war continues

Thailand's fertilizer supply ample as war continues

Singapore, 6 March (Argus) — Fertilizer supply in Thailand remains ample for the next two months, and scheduled arrivals will help to build stocks which will ensure sufficient supply until August, the Thai government said today. Fertilizer supply in Thailand totalled 1.52mn t as of January, with urea accounting for 320,000t or 6.5mn bags, which is sufficient to meet demand in the country for more than two months. Thailand is expected to receive around 100,000t of urea from Saudi Arabia, equivalent to around 2mn bags, bringing the total amount of urea available to farmers to 8.5mn bags, which is sufficient until August, said Airin Panrit, deputy spokesperson for the prime minister's office on 6 March. The government has also instructed relevant agencies to monitor the evolving situation in the Middle East and its impact on domestic prices, and warned retailers not to take advantage of the situation by raising prices excessively, or they would risk facing legal action. This statement came after concerns of a fertilizer shortage arose among farmers following the start of the US-Israel-Iran war, which has effectively choked off supply from producers in the Mideast Gulf for now. The Middle East is the largest urea exporting region, shipping around 20mn t/yr or 35pc of global seaborne trade. Thailand imports most of its urea from the Middle East, with Saudi Arabia being its biggest supplier, accounting for around 1.1mn t of deliveries in 2025. Thailand also imports urea from other sources including Malaysia and Brunei, which could supplement Thailand's urea stocks if needed. "Farmers should not panic," said Panrit, adding "There is no need to rush or buy or stockpile large volumes of fertilizers." Domestic urea prices rise further, importers' reactions mixed Meanwhile, some suppliers have continued to raise domestic granular urea prices in line with firming international offers. The latest bagged domestic granular urea prices have risen to around 17,000 baht/t ($535/t) ex-warehouse as of 6 March, up by 800 baht/t from the day before. Importers agree that further price hikes are expected in the weeks to come. One importer told Argus that current urea inventories are sufficient to cover the upcoming seasonal demand in the near term and importers do not need to rush to import more spot urea on the back of the conflict. Others are seeing several importers seeking spot offers from regional suppliers in Malaysia and Brunei, as they expect supply from the Middle East to be disrupted in the short term. But importers will have to grapple with tight short-term supply from regional producers and significantly higher prices. Malaysian producer Petronas sold 30,000t of spot granular urea on 5 March at $650/t fob Sipitang and has yet to offer any new cargoes, while Bruneian producer BFI is mostly sold out of March and April availability and only offering first-half May cargoes. Pupuk Indonesia is also out of the export market with no sign of a sale tender. Thailand is currently in the harvesting season for off-season rice and fruits. The main planting season for paddy typically starts in May, coinciding with the start of the southwest monsoon season. Domestic demand for fertilizers is likely to emerge only from April onwards, which leaves some time for farmers to evaluate the situation before buying fertilizers. By Huijun Yao and Dinise Chng Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.