The Russian government is looking at a possible temporary ban on exports of ammonium nitrate (AN) to avoid shortages in the local market, according to a Bloomberg report, citing Russia’s Kommersant newspaper.
Exports may be halted for the peak of the early sowing season, until April 1.
Russia already has set allocations for the export of AN, as well as various other nitrogen products, beginning from Dec. 1, 2021, though May 31, 2022. The AN export allocation was set at 744,000 mt (GM Nov. 5, 2021).
This latest development, if it comes to pass, will further exacerbate AN supply concerns, particularly among buyers in Brazil, who are the biggest offtakers of Russian AN. Over 50 percent of Russia’s AN exports went to Brazil in January-November 2021, some 1.92 million mt out of total AN exports of 3.84 million mt, according to Trade Data Monitor. Brazil takes almost all of its AN imports from Russia.
Interestingly, Russian AN shipments to Europe are near zero.
According to the paper, which cited unidentified sources, the potential halt was discussed at a Jan. 27 meeting in the Agriculture Ministry, but a final decision has not been taken.