Russian fertilizer export restrictions extended until December due to intensified global supply shortages caused by US-Iran conflict.

```

With the closure of the Strait of Hormuz, about one-third of global maritime fertilizer trade has been cut off. Russia, the world’s second largest fertilizer producer, has announced an extension of its fertilizer export quota until December, and the alarm over the global food crisis continues to intensify.

According to a statement released by the Russian government on Wednesday, Russian producers are allowed to export 20 million tons of fertilizer between June 1 and November 30. This is a continuation of the previous quota arrangement of 18.7 million tons (valid until the end of May), indicating that Russia will continue to prioritize domestic agricultural supply.

Tight supply has directly affected prices. Since the outbreak of the Iran conflict in February, nitrogen fertilizer prices have almost doubled from before the war. Market participants widely fear that if the blockade of the Strait of Hormuz persists, prices have further room to rise, which may force farmers to reduce fertilizer usage and exert downward pressure on global food production.

Quota Structure: Mainly Nitrogen Fertilizers and Compound Fertilizers

According to the Russian government announcement, the new round of export quotas is divided into three categories: 8.7 million tons of nitrogen fertilizers, over 4.2 million tons of ammonium nitrate, and about 7 million tons of compound fertilizers.

These limits do not apply to fertilizer supplies to the Georgian separatist regions supported by Russia—Abkhazia and South Ossetia—nor do they cover international transit goods and humanitarian aid deliveries.

The Strait of Hormuz is a key route for global maritime fertilizer trade. Disruption of this route has blocked about one-third of global sea-borne fertilizer trade. Countries are scrambling to find alternative supply channels, but export restrictions by major producing nations have significantly increased procurement difficulty and sharply raised costs.

Russia is the World’s Second Largest Fertilizer Producer

Russia accounts for about 20% of total global fertilizer trade and is the world’s second largest fertilizer producer. This quota extension continues Russia’s consistent policy of export controls, using quotas to ensure adequate supply to domestic farmers at lower prices, while keeping exports abroad limited.

Against a backdrop of global supply chains already strained by conflict, Russia’s quota policy further squeezes available supply in the international market, intensifies competition in buyers' markets, and sets the stage for rising global agricultural costs.

UAE fertilizer producer Fertiglobe recently pointed out that current nitrogen fertilizer prices are at a "high level" and there is further risk of increase.

Risk Warning and DisclaimerThe market carries risks, and investment should be made cautiously. This article does not constitute personal investment advice, nor does it take into account the individual investment goals, financial circumstances, or needs of users. Users should consider whether any opinions, viewpoints, or conclusions in this article are appropriate for their particular situation. Investing based on this article is at your own risk. ```