Turkey has purchased additional volumes of fertilizers from Russia amid disruptions in fertilizer supply chains caused by the situation in the Strait of Hormuz, Milliyet reported, citing government and industry sources.
According to the publication, the closure of the Strait of Hormuz has disrupted global fertilizer supply chains and reduced sales by nearly 40%. It has also driven prices higher.
"Turkey in addition to existing reserves has recently purchased fertilizers from Russia and is also negotiating with Morocco and Algeria. Current stockpiles are expected to last the country until fall," Milliyet reported.
Milliyet reported that Turkey’s annual demand for fertilizers is estimated at 7 mln tons, of which 5 mln tons are imported. To balance supply and stabilize price growth on the domestic fertilizer market, certain measures have also been introduced. Fertilizer exports have been suspended, while customs duties on imports of urea, nitrogen and compound fertilizers have been reduced to zero.
Due to the situation around the Strait of Hormuz, urea prices rose from $482.50 to $720 per ton between late February and mid-March. Prices for various types of fertilizers on Turkey’s domestic market have also increased by 30% to 50%.
