Australia's federal government has secured 90,000t of urea across three cargoes under its underwriting scheme to support fertilizer imports in response to tight domestic and global supply, it said today.
The government is working with fertilizer distributers Incitec Pivot and CSBP to import the 90,000t of urea through Export Finance Australia (EFA), agriculture, fisheries and forestry minister Julie Collins said on 13 May. The timeline for delivery of the cargoes was not disclosed.
This is additional to Incitec Pivot's 250,000t of urea from Indonesian state-owned producer Pupuk, scheduled for delivery over May-December. More supply is expected to be announced in the coming days, Collins said.
Urea imports fell by 3pc on the year to 572,300t in January-March, according to data from the Australian Bureau of Statistics, owing to dry summer conditions and low soil moisture levels. About 454,000t of urea is currently in transit to Australia for delivery through June, data from vessel-tracking platform Kpler show.
The deals aim to protect importers from price volatility. Argus last assessed granular urea at A$1,430-1,440/t ($1,029–1,037/t) free carrier (fca) Geelong on 7 May, up by 72pc from levels before the US-Iran war began. (see graph)
Australian farmers are preparing for top-dressing applications for the winter crop, but prompt supply is tight because of minimal trade through the strait of Hormuz.
But Australian suppliers are concerned about the limited competition associated with these underwritten urea cargoes, market sources told Argus. The government said it is streamlining the Australian Competition and Consumer Commission to improve supply chain efficiency, as announced in the 12 May Federal Budget.
