Australia secures supply of 90 000 t of urea
Published by Oliver Kleinschmidt,
Deputy Editor
World Fertilizer,
Australia's federal government has secured 90 000 t of urea across three cargoes under its underwriting scheme to support fertilizer imports in response to tight domestic and global supply, as discovered by Argus Media.
The government is working with fertilizer distributers Incitec Pivot and CSBP to import the 90 000 t of urea through Export Finance Australia (EFA), agriculture, fisheries, and forestry minister Julie Collins said on 13 May. The timeline for delivery of the cargoes was not disclosed.
This is additional to Incitec Pivot's 250 000 t of urea from Indonesian state-owned producer Pupuk, scheduled for delivery over May-December. More supply is expected to be announced in the coming days, Collins said.
Urea imports fell by 3% on the year to 572 300 t in January-March, according to data from the Australian Bureau of Statistics, owing to dry summer conditions and low soil moisture levels. Approximately 454 000 t of urea has been in transit to Australia for delivery through June, data from vessel-tracking platform Kpler showed.
The deals are intended to protect importers from price volatility. Argus Media last assessed granular urea at AUS$1430 - 1440/t (US$1029 - 1037/t) free carrier (fca) Geelong on 7 May, up by 72% from levels before the US-Iran war began.
Australian farmers have been preparing for top-dressing applications for the winter crop, but prompt supply is tight because of minimal trade through the Strait of Hormuz.
But Australian suppliers have remained concerned about the limited competition associated with these underwritten urea cargoes, sources reported to Argus Media. The government stated it is streamlining the Australian Competition and Consumer Commission to improve supply chain efficiency, as announced in the 12 May Federal Budget.
Original article written by Susannah Cornford for Argus Media.
Read the article online at: https://www.worldfertilizer.com/nitrogen/15052026/australia-secures-supply-of-90-000-t-of-urea/
