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Southeast Asia and China's ammonia markets were increasingly viewed as alternative supply bases in the week ended March 5, as escalating tensions in the Middle East heightened concerns over disruptions to regional exports, six market sources in Asia said. Uncertainty surrounding Middle Eastern ammonia cargoes transiting the Strait of Hormuz prompted buyers to redirect sourcing toward Southeast Asia and China, both of which had been considered comfortably supplied in recent weeks.

Asia-based fertilizer market participants have been anxiously watching the escalating conflict in the Middle East, with widespread expectation that prices will firm up amid significant supply chain disruptions. The primary concern is the security of passage through the Strait of Hormuz, a critical artery for global trade, sources said March 2.