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Home Commodities Fertilizers Urea Urea prices, markets & analysis

Urea prices, markets & analysis

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The ICIS weekly Urea reports are covered in China, Europe and the US as well as globally in The Market report. For China, there is an extensive coverage of export, ex-works and ex-warehouse prices, and the Europe report concentrates on spot prilled and granular grades in Yuzhny, Baltic, Middle East and northwest Europe, while the US has spot quotes for the US Gulf and Arab Gulf. All these prices assessments are supported by an independent market commentary that includes details of production news, exports, regional updates, demand and supply and any other key influencing factors. This reliable market intelligence can help you to make informed commercial choices.

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Market Overview

Updated to Q4 2020

Asia

Chinese export availability increased at the start of Q4 as the domestic season slowed. Halfway through the quarter there was a significant decline in Chinese availability because of gas supply cuts. Indonesian supply was committed because of spot sales to India and as fresh licences for the New Year were awaited. Producers in Malaysia and Indonesia underwent planned and unplanned maintenance, but this did not cause any big disruption in supply.

India continued to be a key importer and closed tenders for a total of 3.5m tonnes. It bought from all major origins with producers keen to sell because of better netbacks compared to the US or Brazil. Demand in southeast Asian markets was limited while Sri Lanka continued to issue small and regular tenders.

Europe

The large volumes required by India during Q4 meant that tonnes, which would have been offered to Europe, were redirected to India. This prevented any sense of oversupply or downward pressure on price. Egypt moved 25% more volume to India year on year; some of these tonnes would have been offered to Europe. European producers ran production without any problems and were able to serve domestic demand.

Demand had been widely expected to kick in during October, but this failed to occur because of poor harvest, financial concerns and general market uncertainty. November was then slated as the favoured month for buyers to return for first application storage. It was a slow start but buying eventually improved during H2 November. In December things started to slow, which was typical for the time of year, maybe even more pronounced due to the pandemic.

US

Supply remained constant during the quarter with demand easing as the season was concluded. New Orleans barge values stayed steady over the period so the market was not as attractive for imports as would typically be seen to close the year.

Although urea values remained favourable for farmers, as the quarter progressed the overall pace of demand steadily decreased as harvesting concluded. Many key areas saw winter advance further through much of the later period, which effectively halted additional fertilizing over fields and limited any extra buying.

REGIONAL OVERVIEW

Asia

Chinese supply is expected to be thin with operating rates at around 50% of capacity at the start of Q1. Several plants have shut down on high coal prices, and limited gas supply, with environment protection measures also affecting production. Cold weather and increased economic activity has increased consumption of gas and electricity in the country, leading to less availability for the fertilizer sector. Malaysia also plans scheduled maintenance at two units for a fortnight.

Indian buying has slowed down because of seasonal factors. A tender is expected in February for stocking up purposes. Sowing for the kharif season begins only around June. Buying is expected to emerge in southeast Asia, while other regions such as the US and Europe should account for most of the remaining demand.

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How we can help

Urea news and market information products from ICIS

We offer the following regional Urea analysis and news coverage to keep you informed of factors and developments affecting prices in the Urea marketplace.

  • Price reporting

    Price Reporting – More information about the price reports we publish on Urea
    Independent price assessments and market coverage by region
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  • Price history

    Price History – More information about the historical price data we publish on Urea

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    News & market analysis specifically relating to Urea

    Breaking news of latest developments affecting the markets.
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Methodology

ICIS launches Global Urea Markets General Methodology Consultation more >>

ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.

Our in-depth market knowledge drives our specialist focus, as we recognise the importance of individual market dynamics and not a one-size-fits-all approach.

Over 25 years of reporting on key chemicals markets, including Urea, has brought global recognition of our methodology as being unbiased, authoritative and rigorous in preserving our editorial integrity. Our global network of reporters in Houston, London, Singapore, Shanghai, Guangzhou, Mumbai, Perth and Moscow ensures unrivalled coverage of established and emerging markets.

Nitrates Methodology

Nitrogen (N) fertilizers are produced chemically using natural gas and hydrogen that is contained in the air. Ammonia is produced by mixing nitrogen and hydrogen gases in the presence of heat, pressure and a catalyst compound.

Urea Methodology

Urea is the most widely-produced and commonly-traded nitrogen fertilizer. Production amounts to more than 140m. tonnes a year, of which about 30m.

Read More

About Urea

Urea occurs as white hygroscopic crystals, which are either odourless or have a slight smell of ammonia. Urea is not considered to be harmful at normal temperature, but the dust may irritate the skin, eyes and nose.

The major outlet for urea, accounting for nearly 90% of total consumption, is as a fertilizer. Urea is also used in the manufacture of urea-formaldehyde resins, the synthesis of melamine, in adhesives and paints, and for laminates, moulding compounds, impregnating paper and textiles.

Urea is widely traded on international fertilizer markets. There are two main hubs in urea trade – the Black Sea and Arab Gulf. These flows are said to determine the global urea prices.

Urea production involves a two step process where the ammonia and carbon dioxide react to form ammonium carbamate which is then dehydrated to urea. In the process, ammonia and carbon dioxide are fed to the synthesis reactor which operates around 180-210oC and 150 bar pressure.

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Ammonia

Melamine

News

TOPIC PAGE: Fertilizers - navigating the global downturn
Fri, 22 Jan 2021 11:45

The sharp global economic downturn caused by the coronavirus pandemic and the collapse in crude oil prices has wide-ranging implications for the fertilizers industry. Bookmark this Topic Page to stay...

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PODCAST: Urea price rally beats expectations
Wed, 20 Jan 2021 14:21

LONDON (ICIS)--The international urea and nitrates market has started 2021 at a much faster pace than the industry had been expecting, with demand surging and international prices firming as a...

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Chinese urea prices higher on coronavirus-related logistical problems
Thu, 14 Jan 2021 16:00

LONDON (ICIS)--Prilled and granular urea prices in China have risen by 6%, or around $20/tonne, in less than a week, after the northern province of Hebei was locked down following a new cluster of...

Read
US Hexion leans on internal growth to expand specialties
Fri, 08 Jan 2021 23:42

HOUSTON (ICIS)--Hexion is adopting internal growth as a second plank to move the company's portfolio towards specialty products that are not exposed to the ups and downs of the business cycle, the...

Read
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