China has moved to tighten restrictions on fertilizer exports in response to global supply disruptions triggered by the war involving Iran, a conflict that has begun to push crop nutrient prices sharply higher across international markets. According to a report by Bloomberg citing people familiar with the matter, Chinese authorities have instructed exporters to halt outbound shipments of certain fertilizer products in order to safeguard domestic supply and stabilize prices ahead of the country’s crucial spring planting season.
Officials have reportedly asked exporters to stop shipping nitrogen-potassium fertilizer blends overseas while also reaffirming existing export restrictions on urea, one of the world’s most widely used nitrogen fertilizers. The decision has effectively dampened expectations among traders that Beijing might soon issue new export quotas that would allow additional international sales, Bloomberg reported.
China is one of the world’s largest consumers and producers of fertilizers, and its policy decisions often have a significant influence on global agricultural markets. By tightening export controls, the government aims to ensure sufficient availability of fertilizers for domestic farmers as agricultural activity accelerates in the spring. Authorities are particularly focused on maintaining stable supply levels in order to protect national grain production, which could be threatened if fertilizer shortages emerge.
Sources cited by Bloomberg said the new measures have effectively halted exports of most fertilizer types from China, including compound fertilizers that had previously continued to flow to overseas markets. However, ammonium sulfate remains a key exception. This fertilizer accounted for roughly half of China’s fertilizer shipments last year and is currently not affected by the new restrictions.
The report noted that China’s National Development and Reform Commission, the General Administration of Customs, and the Ministry of Commerce did not immediately respond to requests for comment regarding the policy adjustments.
The tightening of Chinese exports comes as the conflict in the Middle East disrupts a major global hub for fertilizer production and distribution. Iran plays an important role in the supply of fertilizers and related inputs, and the war has begun to constrain availability in international markets. As a result, prices have surged worldwide, affecting farmers from North America to Asia and Europe.
Data cited by Bloomberg shows that spot prices for urea in China have jumped nearly 40 percent since the beginning of the U.S.-Israeli attacks on Iran, highlighting how rapidly the conflict is influencing agricultural input costs. The price surge has triggered a wave of precautionary buying by farmers and agricultural companies seeking to secure supplies before prices climb even higher.
The tightening supply has also prompted governments in other countries to seek alternative sources. Bloomberg reported that Indian officials recently approached China to request permission for the sale of some urea cargoes as the conflict has reduced natural gas supplies needed for domestic fertilizer production in India.
China has maintained restrictions on urea exports for several years, typically regulating shipments through an annual quota system. Industry groups have also taken steps to support domestic supply, including urging companies to suspend phosphate fertilizer exports until August in order to ensure adequate availability for local farmers.
Although export limits were partially relaxed last year and some compound fertilizer products continued to reach international markets, the latest developments indicate a renewed tightening of policy as Beijing prioritizes domestic agricultural needs. According to sources cited by Bloomberg, exporters who had been shipping certain compound fertilizers abroad have now been instructed to suspend those shipments.
In addition to curbing exports, Chinese authorities have also taken steps to release commercial fertilizer stockpiles earlier than usual this year to support farmers during the spring planting period. The China Agricultural Means of Production Association said the move is intended to ensure sufficient supplies during the peak demand season and prevent further price volatility in the domestic market.
