Faced with an energy crisis, China increases control over its fertilizer exports

Chinese authorities have imposed new restrictions on fertilizer exporters in the face of growing concerns about higher energy costs and food production, a move that could intensify the global price shock.

Some ready-to-ship shipments of Chinese fertilizers are being held up by local authorities for further checking or to obtain new export certificates, according to those familiar with the matter.

Inputs will either end up being sold domestically or face export delays, said the anonymous sources.

The situation coincides with record-high global fertilizer costs that are driven by the energy crisis in Europe and China, as coal and natural gas are key raw materials.

The rise in costs comes at a particularly worrying time, with global food prices at their highest level in 10 years.

The new measures implemented by Chinese authorities follow regulations for the customs regime that took effect on October 15, requiring additional inspection of fertilizer exports.

The General Administration of Customs has added new inspection requirements for 29 product categories, including urea and ammonium nitrate, according to a statement this month.

China’s move to limit fertilizer exports will be felt around the world, as the country is an important supplier of urea, sulfate, and phosphate, accounting for around 30% of global trade.

Source: Money Times

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