KUALA LUMPUR (March 19): The ongoing conflict in West Asia, if prolonged, could lead to severe structural disruptions in the Malaysian fertiliser market, said the Fertiliser Industry Association of Malaysia (FIAM). The FIAM said the West Asia region is currently a major supplier of natural gas, urea, ammonia and sulphur, the important materials for the production of fertilisers globally, and prolonged instability would constrain production capacity while simultaneously disrupting export flows. "In addition, insurance premiums for ships transiting conflict zones would rise dramatically, in some cases tripling, further inflating landed costs," it added. "Traders and distributors, anticipating further disruption, would continue to stockpile, adding speculative demand pressure on top of physical scarcity. It added that fertiliser application schedules would also be disrupted by delayed shipments, and yield risks would rise if fertilisers had to be rationed or substituted with lower-grade alternatives.

Source: The Edge Markets March 19, 2026 10:38 UTC