Chinese authorities will place export quotas on phosphate...

Chinese authorities will place export quotas on phosphate fertilizers as they seek to protect domestic supplies and reduce input costs for farmers. Exports are expected to be restricted to just over 3 MMT for the SH of the year. These latest restrictions follow a requirement for inspection certificates introduced in October 2021,. This was in response to a surge in exports, as well as electricity shortages that forced some plants to cut production. The new policy is set to reduce Chinese fertilizer exports even further, which totaled just 1.2 MMT in June, a 50.4% YoY decrease. The main destinations for these shipments were Brazil, Indonesia, and India.Brazil and India saw the largest fall in trade, with June exports to Brazil down 79.5% YoY at 175,000 tonnes and exports to India decreasing by 59.6% YoY to 285,000 tonnes.

The quotas will add to already tight global fertilizer supplies as other export quotas have been placed by major producers Russia and Belarus.