{"id":687300,"date":"2026-03-10T00:00:00","date_gmt":"2026-03-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=687300"},"modified":"2026-03-10T04:36:17","modified_gmt":"2026-03-10T04:36:17","slug":"hormuz-strait-closure-leaves-gap-in-global-fertilizer-market-and-also-cuts-off-the-gas-we-need-to-fill-it","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/10\/hormuz-strait-closure-leaves-gap-in-global-fertilizer-market-and-also-cuts-off-the-gas-we-need-to-fill-it\/","title":{"rendered":"Hormuz Strait closure leaves gap in global fertilizer market \u2014 and also cuts off the gas we need to fill it"},"content":{"rendered":"<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong><a href=\"https:\/\/www.kpler.com\/blog\/global-fertiliser-dependency-on-gulf-exports-what-if-hormuz-is-disrupted\" target=\"_blank\" rel=\"noopener\">A third<\/a><\/strong><strong> of global fertilizer shipments pass through the Hormuz Strait, <\/strong><strong>linking the Egyptian fertilizer industry\u2019s main competition in the GCC with markets worldwide.<\/strong> The closure of the strait has led to supply concerns that have seen global urea prices rise over 29.3% this month, already to USD 584.50 per metric ton.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Egypt has a sizable production capacity and a direct route to Europe to help fill the gap <\/strong><strong>in market<\/strong>, with the country already producing 7-8 mn tons of nitrogenous fertilizers each year, of which 40-50% is exported, Chemicals and Fertilizers Export Council Chairman Khaled Abu Al Makarem tells EnterpriseAM. Egypt produces enough nitrogen-, phosphate-, and potassium-based fertilizers to supply the local market despite market disruptions, Polyserve Chairman Sherif El Gabaly tells us.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>But nitrogen-based fertilizers depend on natural gas, which may be directed to <\/strong><strong>prioritize electricity production if the energy squeeze continues. <\/strong>The most important factor to keep production levels where they are at is the continuity of gas supplies to factories, with shortages likely to lead to declines in production, the two fertilizer industry insiders said. Phosphate- and potassium-based fertilizers don\u2019t share the same reliance on natural gas, however, with the two maintaining a surplus relative to local consumption, they added.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Adding fuel to the fire, the EU <\/strong><strong><a href=\"https:\/\/www.h2-view.com\/story\/eu-dismisses-cbam-suspension-for-fertilisers-follow-hydrogen-lobby-pressure\/2138098.article\/\" target=\"_blank\" rel=\"noopener\">announced<\/a><\/strong><strong> it will keep carbon levies on imported <\/strong><strong>fertilizers <\/strong>under its Carbon Border Adjustment Mechanism, rejecting calls to suspend the scheme despite concerns that it could push up costs for farmers. \u201cThe decision is ill-timed, especially given the repercussions of the ongoing war, the rising energy prices, and the halt in urea production from Qatar, the UAE, and Saudi Arabia \u2014 the largest gas exporters. Therefore, prices will rise much higher than the ETS carbon price increase,\u201d H2lligence CEO Osama Henein tells EnterpriseAM.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>DATA POINT- <\/strong>Worldwide fertilizer consumption \u2014 of which nitrogen-based fertilizers account for roughly 60% \u2014 is understood to have totaled 205 mn metric tons in 2025, according to the <a href=\"https:\/\/ent.news\/2026\/3\/491.pdf\" target=\"_blank\" rel=\"noopener\">International Fertilizer Association (pdf)<\/a>.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\">\n","protected":false},"excerpt":{"rendered":"<p>Egypt already producing 7-8 mn tons of nitrogenous fertilizers each year, of which 40-50% is exported<\/p>\n","protected":false},"author":1,"featured_media":687301,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7305],"tags":[97,317,72,99,131],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-687300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commodities","tag-agriculture","tag-commodities","tag-enterpriseam","tag-fertilizers","tag-manufacturing","wpautop","entry"],"acf":{"mongo_id":"3220d7f5-0a14-4e79-a1cf-684e0deb4b60","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/3\/467.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Fertile soil for upping exports?","related_issue":[687292],"teaser":"Egypt already producing 7-8 mn tons of nitrogenous fertilizers each year, of which 40-50% is exported","photo_link":"","related_sponsor":"","voice_url":"","en_translation_ref_id":"","section_story_id":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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