Indonesia: The Arab Potash Company (APC) said during its participation in the Argus Fertilizer Asia 2026 conference in Indonesia that it is actively engaged in global discussions on the future of the industry, as its Chairman and CEO outlined major structural shifts reshaping international markets.
According to Jordan News Agency, Chairman Shehadah Abu Hdaib emphasized that current global developments are not mere cyclical fluctuations or temporary crises but represent a fundamental transformation in the global economy. He stated that the fertilizer sector has moved beyond being just an agricultural input and has become a pillar of global food security, economic stability, and national security.
He noted that the Middle East has become a central hub in global supply dynamics, exporting over 60 million tonnes of fertilizers and related raw materials annually. Of this, approximately 45 million tonnes pass through the Strait of Hormuz, making it a critical chokepoint in the global economy with a significant impact on market stability.
Abu Hdaib further explained that the region accounts for around 50% of global sulfur exports and over 30% of urea exports, which has contributed to sharp price increases due to a “geopolitical risk premium” embedded in global pricing structures. Prices, he said, are now influenced by geopolitical uncertainty in addition to supply and demand.
He pointed out that recent logistical challenges in global trade, such as reduced efficiency of maritime routes and rising shipping and insurance costs, have reshaped trade flows and imposed new operational realities on companies, resulting in extended shipping times, increased costs, and higher risks, especially in import-dependent markets.
Despite these challenges, Abu Hdaib stated that the company has maintained export continuity and steady supply flows to global markets by adopting a proactive approach focused on operational flexibility, diversifying logistics routes, and strengthening risk management tools, thereby reinforcing its position as a reliable supplier and strategic partner.
CEO Maen Nsour highlighted that regional developments have prompted global firms to rethink their business models, shifting from traditional approaches centered on operational efficiency and cost reduction to more advanced models that prioritize flexibility, diversified supply chains, and proactive risk management in an increasingly uncertain global environment.
Nsour explained that any disruption in the Strait of Hormuz, even if brief, could halt critical flows of raw materials such as sulfur, ammonia, and urea, which are essential for fertilizer production.
He described the fertilizer sector as a cornerstone of the global economy due to its central role in agricultural and industrial value chains, warning that disruptions can trigger a cascading effect from energy markets to fertilizers, food prices, and ultimately inflation and economic growth.
Nsour noted that fertilizer demand, particularly in Asia, is undergoing rapid shifts driven by demographic and economic factors. Southeast Asia’s population exceeds 700 million, boosting food demand and, in turn, demand for agricultural inputs, especially high-efficiency fertilizers.
This growth, he added, has been accompanied by changing consumption patterns linked to rising incomes and purchasing power, increasing demand for higher-value crops and requiring more advanced fertilizers to enhance productivity.
He also mentioned that rising fertilizer prices are beginning to affect farmer behavior, with some reducing usage rates or delaying purchases, adding complexity to the market. Climate change is also reshaping demand, as weather volatility pushes farmers towards more efficient and specialized fertilizers.
Nsour stated that fertilizer applications now extend beyond agriculture into key industries, including mining and chemicals, as well as emerging energy applications such as lithium iron phosphate batteries, reflecting a more diverse and complex global demand structure.
On strategy, he said the company has adopted an integrated approach to enhance operational resilience, including developing logistics infrastructure, diversifying export markets, and studying the establishment of regional storage hubs to improve responsiveness to supply chain disruptions.
He added that the company reduced production costs by 5% in 2024 while investing in renewable energy projects with a capacity of 36 megawatts as part of efforts to enhance sustainability and reduce reliance on conventional energy sources. It has also diversified its product portfolio to nine products serving both agricultural and industrial uses.
On sustainability, Nsour said environmental, social, and governance (ESG) standards have become a key determinant of competitiveness amid tightening global regulations, such as the European carbon border adjustment mechanism, which imposes strict emissions standards.
He noted that companies investing in green transformation will be better positioned to maintain market share, while others will face growing challenges, highlighting that APC benefits from a competitive advantage through its reliance on natural solar evaporation at the Dead Sea, one of the least energy-intensive production methods, reducing costs and carbon footprint.
Assessing regional crises, Nsour mentioned that the war in the Middle East has triggered a structural shock in global markets due to the concentration of production and exports in the region, embedding geopolitical risk into pricing and heightening market sensitivity to disruptions.
He added that importing countries are adjusting behavior by building strategic reserves, diversifying supply sources, and reducing reliance on specific regions to strengthen supply security as part of national food security strategies.
He concluded that APC is well positioned within these shifts due to its low-cost production model and geographic location, noting that potash is less dependent on the Strait of Hormuz compared with other products such as urea and sulfur, giving it greater ability to maintain supply stability and reduce risk.
Nsour emphasized that the next phase will require companies to adopt more flexible and innovative operating models focused on supply security, sustainability, and risk management, adding that APC aims to turn global challenges into strategic opportunities and strengthen its role as a trusted partner in supporting global food security amid heightened economic uncertainty.