Perth, March 6, 2026, 14:33 AWST
- CSBP flagged possible delays for certain ammonium phosphate and urea shipments, adding that some imports are now on hold.
- The supplier confirmed March collections are on track, though contracts for April and beyond won’t be accelerated.
- Fertiliser prices are climbing, analysts say, as concerns grow over broader disruption in the Strait of Hormuz—right as farmers are finalizing planting decisions.
CSBP, the chemicals and fertiliser division of Wesfarmers, told customers to brace for possible delays in shipments of ammonium phosphate fertilisers and urea, citing the ongoing Iran war’s impact on Persian Gulf supply routes. The company is “urgently” reviewing stock levels and looking into other sourcing options. Some imports are being put on hold, CSBP confirmed. Reuters
Awkward timing for growers in Western Australia. They’re entering the critical window for picking up and applying fertiliser before the winter crop, with CSBP standing out as one of the state’s largest suppliers.
The squeeze isn’t confined to one region. Fertiliser prices are climbing fast worldwide, with growers facing steeper bills as Strait of Hormuz shipping lags and producers scale back output. Spring planting looms across the Northern Hemisphere, only adding to the pressure. “Literally, this could not happen at a worse time of the year,” said StoneX analyst Josh Linville. Morningstar’s Seth Goldstein flagged the risk: nitrogen prices might nearly double if the disruption drags on for more than a few weeks. Reuters
Energy markets remain unsettled, with the conflict in the Middle East disrupting shipping routes and production—freight rates and insurance costs on moved cargoes have climbed. The Strait of Hormuz stands out for analysts, given how much energy typically moves through the channel.
Australia leans heavily on imports, and it shows. According to the Australian Bureau of Statistics data cited by Argus, the country sourced 64% of its urea from the Gulf in 2025. Without fresh shipments, domestic stockpiles might not make it past mid-April.
CSBP plans to deliver fertiliser to growers this month, sticking to March as the agreed collection date in contracts. The company made it clear: “contracts scheduled for April or later cannot be brought forward for collection at this stage.”
Urea, a nitrogen fertiliser, is central to cereal and oilseed production. Price moves sway planting decisions and application rates, sometimes forcing farmers to accept yield risks just to keep input costs down.
CSBP gets its natural gas feedstock, essential for producing certain nitrogen products, from Western Australia. The company also brings in extra fertiliser and raw inputs like phosphates and ammonium phosphate blends. That reliance on imports can turn risky if shipping routes stall.
It’s really a question of how long this lasts. CSBP pointed out that conditions in the Persian Gulf remain fluid, saying it expects “better visibility” within the next few days. If things clear up quickly, the fallout should be limited. But if the closure drags on, supply could tighten and prices may climb right as the peak application window approaches.
Wesfarmers counts Bunnings and Kmart among its holdings, ranking as one of Australia’s top-listed conglomerates. The Wesfarmers Chemicals, Energy and Fertilisers arm houses CSBP, a key supplier of industrial chemicals and fertilisers to mining and agricultural sectors across Western Australia.
