Urea Prices

Urea Prices December 2023

The price trend of urea in USA was 470 USD/MT. In the fourth quarter of 2023, U.S., urea witnessed a decline in prices mainly due to a combination of moderate demand and logistical problems. Water shortages triggered a cautious approach towards buying a product which eventually led to a bottleneck in the main shipping lanes and this led to big delays and increased inventory levels. In the light of the sound home fertilizer market, and the complications of forwarding and rerouting the exports based on the security issues, the conditions for the probable excess are created.

The price trend of urea in China was 350 USD/MT. In the fourth quarter of 2023, a complex price pattern was observed, where in the beginning the price decline related to oversupply and weak demand. The main factor that lead to this surplus was the halt in fertilizer exports. On the other hand, the prices rose in the course of time since the production costs increased on account of the growing feedstock prices. Also, logistical hurdles such as high freight charges because of rerouted shipping lanes in order to calm down security concerns, impacted the price trend as well. While the fluctuations from time to time, the demand within the substantial China’s fertilizer industry was not so strong after the peak season of planting.

The price trend of urea in Europe was 410 USD/MT. The urea market in Europe saw a mixed price performance in the last quarter of 2023, initially a sharp increase as shortage in supply arises from production cutbacks and shut-down of production facilities by major players. This bullish trend was however short-lived as the prices later experienced a downward trend, this was caused by the low demand within the European market and exacerbated by trade uncertainties. The bad weather added to the downward trend in purchasing behaviors amid low expectations of demand for the upcoming planting season.

Urea Price Trend, Market Analysis, and News 

IMARC’s newly published report, titled “Urea Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of urea pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of urea at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of urea price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing urea price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Urea Market Analysis

The global urea market size reached US$ 51.9 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 59.9 Billion, at a projected CAGR of 1.60% during 2023-2032.

The growing global requirement for food due to the increasing global population is emphasizing on the production of high-efficiency fertilizers of which urea is one to improve crop yields. According to The World Economic Forum around half of the world population today are reliant on food produced by mineral fertilizers. Moreover, the expansion of biofuels production, demanding large quantities of nitrogen-based fertilizers for growing feedstock is propelling the market growth. In addition to this, improvements in manufacturing processes are resulting in higher yield and lower costs of urea production. Precision farming techniques are becoming more favorable due to the use of the right dosage of fertilizers to ensure maximum productivity of the agricultural land. Apart from this, policies of the government and subsidies in different countries that are aimed at supporting agricultural sectors facilitate the usage of efficient fertilizers, thereby supporting the market growth. For instance, Government of India (GoI) made climate change a leading issue within their environmental policies pledging to be zero net carbon emission by the year 2070 and has set a target of 500 gigawatts of non-fossil energy generation capacity by 2030. Innovation of advanced urea formulations including slow-release urea and stabilized urea to minimize environmental effect and improve nitrogen utilization is contributing to the market growth. Furthermore, urea’s application extends beyond agriculture to industrial uses, pharmaceuticals, and as a diesel exhaust fluid, thus boosting its market growth. According to the World Bank, the agriculture, forestry, and fishing industries together generated USD 4.17 trillion of economic output in 2021, which was higher than USD 3.72 trillion a year earlier. The focus of this approach is on sustainable agriculture practices that involve a proper mix of chemical fertilizers and organic inputs. Continuous investment in agricultural, infrastructural development and supply chain improvements, availability and accessibility of urea in remote farms is leading the market towards growth across the globe.

Urea News

The report covers the latest developments, updates, and trends impacting the global urea market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in urea production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the urea price trend.

Latest developments in the Urea industry: 

• In June 2022, PT Pupuk Kalimantan Timur, also known as Pupuk Kaltim, declared they were considering a project to establish a factory in West Papua's Bintuni Bay, Indonesia. The factory will convert natural gas into urea, ammonia, and methanol.
• In May 2022, IFFCO, the Indian Farmers' Fertiliser Cooperative Limited, a member-owned cooperative based in India, announces their business expansion by installing the first IFFCO nano urea (liquid) production unit in Kalol, Gujarat, India. The expansion was done with an investment of INR 175 crore equivalent to USD 21.52 million.

Product Description

Urea being the white crystalline material and having the chemical formula CO(NH2)2 is considered to be the most essential nitrogenous fertilizer in the global market due to its high nitrogen content - 46%. Developed under high pressure and temperature with the key ingredients being carbon dioxide and ammonia, urea is unique for its versatility and solubility in water, hence easy adaptability to different soil types. This feature also enables it to deliver nutrients to crops, making it a popular pick among farmers. Beyond agriculture, urea has a place in a number of industries' applications. It plays an important part in the manufacturing process of urea-formaldehyde resins, which are very widely used as adhesives, plywoods and composites. Moreover, urea is incorporated into the pharmaceutical industry, in skin care products as a moisturizer and as diesel exhaust fluid (DEF) in the automotive industry for reducing nitrogen oxide emissions.

Regional Coverage

The report provides a detailed analysis of the urea market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the urea price trend.

Global Urea Price

The report offers a holistic view of the global urea pricing trends in the form of urea price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price of urea but also provides insights into historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed urea demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Urea Price

The European urea market, at some point, was a mixture of price rise and decline. Primarily, buyers would use bio-chemical fertilizers with cut back production in various companies. Such trends were upwards due to a dynamic global economy then fell back as demand cooled and exporters’ uncertainty conditions prevailed. The negative weather conditions and logistical constraints including the need to evade security risks were amongst the factors that put more port vessels and goods on the waters and in stock, consequently balancing out demand and supply more closely in the western region.

This analysis can be extended to include detailed urea price information for a comprehensive list of countries. 

North America Urea Price

The North American urea market suffered a decline mainly due to multiple factors of which included subdued demand because of the El-Nino related drought concerns that led to the scarcity in purchasing of the product. Supply chain imbalances from shipping bottlenecks in critical straits were one of the major contributing factors to delivery delays and increasing inventory levels. In addition to supporting the fertilizer market in the domestic arena, logistical problems and the search for alternative trade routes could end up with too much supply of goods, thus putting downward pressure on prices.

Specific urea historical data within the United States and Canada can also be provided.

Middle East and Africa Urea Price

In the Middle East and Africa region, the urea market exhibited a beginning uptrend in the first half of 2020 when international supply shortages occurred, notably after a major producer imposed restrictions on fertilizer exports. On the other hand, the situation turned unfavorably because of plant issues, supply restrictions, and decreased need in the main clients as the planting season ended. Adverse weather, as well as trade uncertainties including the need to avoid security risks, have led to the use of alternative routes for transportation, throwing the supply-demand balance off track.

In addition to region-wise data, information on urea prices for countries can also be provided. 

Asia Pacific Urea Price

In the Asia-Pacific urea market, initially prices dropped because the surplus was high and demand was low. This, moreover, was compounded by interrupted exportations of fertilizers from a major supplier, which in turn caused market slack. On the other hand, feedstock price hike pushed production costs up, and this subsequently caused the price to fall. These challenges such as shipping reroutings because of security threats also affected the market, which was generally at low demand from the fertilizer industry after the planting season.

This urea price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Urea Price

In Latin America, the urea market faced challenges during Q4 2023, particularly in Brazil where the market trends were predominantly bearish. Although the planting season was active for soybeans rice, and sorghum, urea demand, essential for fertilization, remained low. This was primarily due to the extreme weather impacting the region. Northern Brazil suffered from intense heat and dryness, adversely affecting crop viability, while the southern areas experienced initially cool, then slightly warmer conditions. This weather disparity, driven by the ongoing El Niño phenomenon, expected to persist into early 2024, curtailed purchasing enthusiasm among fertilizer buyers. However, urea imports, mainly from the USA, continued smoothly without any logistical disruptions, maintaining a stable supply. This convergence of demand and supply dynamics has led to a continued downward trend in urea prices across the region.

This comprehensive review can be extended to include specific countries within the region. 

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of urea pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting urea price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The urea price charts ensure our clients remain at the forefront of the industry.