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Australian urea faces supply risk on Iran conflict

  • Mercados: Fertilizers
  • 02/03/26

The Australian urea market is at risk of short supply and domestic prices are expected to rise ahead of peak seasonal demand, in the aftermath of the US and Israeli attack on Iran.

Australian fertilizer suppliers have received increased enquiries from local buyers reacting to the escalated conflict in the Middle East. Domestic prices for urea, ammonium sulphate (amsul), and ammonium phosphates prices are already increasing, suppliers said.

Local prices remained high last week despite weak demand, because of the threat of escalation in the Middle East and potential closure of the strait of Hormuz. Fertilizer prices last surged during the 12-day war between Israel and Iran in June 2025. The Argus assessed granular urea price increased by A$118/t ($84/t) to A$855-875/t fca Geelong over 12-19 June 2025. Argus last assessed granular urea at A$830-840/t fca Geelong on 26 February.

Australia imported 64pc of its urea from the Gulf nations of Saudi Arabia, Qatar, the UAE, Bahrain and Oman in 2025, trade data from the Australian Bureau of Statistics (ABS) show. Urea imports typically peak in April–June for pre-seeding and top-dressing application for winter crop (see graph).

US president Donald Trump expects the conflict to last four weeks, which would disrupt cargoes leaving the Persian Gulf in March and April. Australia imported 1.2mn t of urea in April and May 2025, of which 911,000t came from the region, ABS data show.

Growers have not bought significant amounts of urea in recent weeks because of dry conditions in many of Australia's key growing regions, but recent rainfall has improved market sentiment.

One supplier reported increased enquiries for amsul, which can be used as an alternative to urea. Australia imported 579,500t of amsul in 2025, of which 99pc came from China.

Australian urea imports (t)

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