Middle East Tensions Threaten Fertilizer Supply; Industry Has Short-Term Stock

• Escalating Middle East tensions could disrupt global fertilizer supply chains and push up prices.
• Industry currently holds sufficient inventory for a couple of months, partly due to carryover from the previous season.
• India is highly vulnerable, importing 30% of its fertilizer needs, with 40% from the Middle East, and 30% of key raw materials.
• QatarEnergy LNG, a major supplier, suspended production due to attacks, impacting India's critical LNG imports for urea manufacturing.
• Companies are exploring alternative fuels, import substitution, and new sourcing routes like South Africa, but face higher costs and longer delivery times.