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Saudi ArabiaQ1 2025:
In Q1 2025, global Urea prices experienced a mild recovery, driven by renewed demand ahead of the kharif sowing season and tighter supply conditions. Domestically, China’s urea prices climbed from USD 217/MT in January to USD 265/MT in March 2025, reflecting increased fertilizer needs and limited export availability due to stricter environmental controls on Chinese producers. Meanwhile, Urea prices in Oman rose to USD 450/MT and prices in the Middle East breached 425/MT, supported by stronger spot interest. Market participants reported aggressive buying from Türkiye and Southeast Asia, while Pakistan and Bangladesh faced spot shortages. However, Urea prices normalized towards the end of the quarter as the procurements eased in March 2025.
Q4 2024:
Urea prices declined again in the last quarter of 2024, as expected, due to deteriorating demand. In the Middle East, prices dropped from USD 375/MT in October to USD 352/MT in December 2024, while in Egypt, prices fell from USD 377/MT in October to USD 355/MT by November, before rebounding in December. Supply remained robust, with increased availability from Iran and Russia, while post-harvest demand weakened significantly. Many buyers deferred new purchases, anticipating clearer market direction from Q1 2025 tenders. Market analysts noted that persistent oversupply and cautious procurement behavior contributed to the price downturn, despite a late-year price correction in some regions.
Q3 2024:
Urea prices rebounded modestly in the third quarter of 2024, with prices in the Middle East (FOB Ras-al-Khair) remaining steady at USD 342/MT from July to September but peaking at USD 345/MT in August. Market support came from tightened supply due to shipping restrictions and a slight uptick in demand from East Africa. Market participants highlighted interruptions in the Suez route, which impacted logistics and contributed to supply bottlenecks. Additionally, increased spot interest from Thailand and Vietnam reflected regional demand recovery. These factors, combined with logistical challenges, helped stabilize prices and limit further declines during the quarter.
Q2 2024:
Urea prices softened under oversupply pressure in the first half of Q2 2024, but the market witnessed a significant recovery in the second half as procurement activity improved. In China, urea prices increased from USD 297/MT in April to USD 368/MT in June, with a temporary low of USD 332/MT in May. FOB Oman prices also improved, rising from USD 312/MT to USD 337/MT. China ramped up exports ahead of tightening environmental audits, while demand from South Asia remained subdued. High inventory levels in Brazil and Indonesia slowed spot buying, especially in East Africa and Southeast Asia, leading to mixed market conditions throughout the quarter.
Q1 2024:
Urea prices were volatile in the first quarter of 2024, with notable fluctuations across major markets. In the Middle East, Urea prices rose from USD 335/MT in January to USD 351/MT in February before easing to USD 330/MT in March. In Egypt, prices increased from USD 332/MT to USD 406/MT in February, then softened to USD 378/MT. These shifts were influenced by delayed tenders in India, short-term spot buying from Latin America, and tight port logistics in the Red Sea region. Market participants observed significant week-to-week pricing swings, reflecting ongoing supply chain uncertainties and shifting demand patterns in key importing and exporting regions.
Q1 2025:
In Q1 2025, Urea prices from Saudi Arabia increased to USD 430-450/MT CFR JNPT, marking a sharp rise from Q4 2024. This sharp uptick has been primarily driven by persistent demand from the Indian sub-continent amidst upcoming kharif season and thus hefty procurement from fertilizer producers. Additionally, elevated natural gas prices—urea’s main production cost—continue to exert upward pressure on manufacturing expenses. Demand also remained firm due to strategic procurement by import-dependent countries like India, further supporting prices. Overall, Urea price increase reflected a confluence of supply constraints, energy market volatility, and strong seasonal demand in major agricultural markets.
Q4 2024:
During Q4 2024, Urea prices edged up to USD 403 USD/MT CFR Paradip (from Saudi Arabia), marking a notable increase of more than 5% from Q3 2024. This slight uptick can be attributed to a combination of factors: stable to slightly higher production costs—primarily due to natural gas price fluctuations, which significantly impact urea manufacturing expenses—and persistent, if moderate, international demand. Despite a broader global trend of declining urea prices amid oversupply and weak demand in major markets, localized supply chain disruptions, freight cost variations, and steady industrial demand in regions like India contributed to this small but notable price rise.
Q3 2024:
During Q3 2024, CFR JNPT (from Saudi Arabia) Urea prices rose to USD 367 USD/MT, a 2% increase from Q2 2024. This slight uptick reflects stable but firm demand, likely supported by steady international purchases and effective inventory management in Saudi Arabia, despite variable supply and fluctuating freight costs. The modest price rise also suggests that supply disruptions and logistical issues were balanced by robust industrial demand, preventing significant price drops. Additionally, while some regions saw declining urea prices due to weak demand and lower feedstock costs, the Middle East maintained relative price stability, helping to support the minor upward movement at JNPT.
Q2 2024:
During Q2 2024, Urea prices for the imported material from Saudi Arabia fell to USD 361 USD/MT , CFR Paradip, marking a marginal decrease from Q1 2024. This slight decline can be attributed to several factors: reduced demand in key fertilizer markets, lower costs of the main raw material ammonia, and increased supply from major producers. Additionally, delays in large Indian urea tenders and subdued buying activity globally have contributed to downward prices. The overall market sentiment remained bearish, with supply outpacing demand and producers adjusting prices to remain competitive in a softening market environment.
Q1 2024:
During Q1 2024, Urea prices fell to USD 362 USD/MT CFR JNPT (from Saudi Arabia), marking a slight decrease from Q4 2023. This marginal decline can be explained by a combination of steady global supply and subdued demand in key importing regions, such as India and China, which kept prices under pressure. Additionally, lower production costs due to decreased feedstock prices and expectations of eased export restrictions contributed to the downward trend. Despite minor logistical disruptions, robust inventory management and balanced industrial demand helped prevent a steeper price drop, resulting in overall market stability.
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China’s Export Restrictions (2021–2022)
China tightened urea export controls in late 2021 to meet domestic needs. This reduction in global supply pushed international urea prices higher during this period.
Russia-Ukraine Conflict (2022)
The Russia-Ukraine war disrupted fertilizer exports from Russia and drove up natural gas prices, a key urea feedstock. Sanctions and trade restrictions resulted in global urea shortages and record-high prices in 2022.
New Urea Policy (NUP-2015) in India
The Indian government introduced NUP-2015 to boost local urea production and control costs. However, delayed subsidy payments and continued import reliance led to ongoing price fluctuations in India’s urea market.
These events underscore the Urea market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.
This research methodology ensures that PriceWatch delivers accurate, timely, and actionable Urea pricing assessments, enabling our clients to stay ahead of market trends and make informed decisions in an ever-changing market.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Urea is a white, crystalline organic compound widely used as a high-nitrogen fertilizer, containing about 46% nitrogen—the highest among solid nitrogenous fertilizers. It is highly water-soluble, non-flammable, and has a neutral pH, making it safe and effective for all soil types and most crops. Urea promotes vigorous vegetative growth, enhances leaf color, and boosts overall plant health and yield. Additionally, it serves as an animal feed additive and has industrial applications in plastics and resins production. Urea is easy to store, handle, and apply.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Test Parameter | Standard (Typical) |
| Appearance (Color) | White or slightly colored |
| Appearance (Form) | Solid granules or prills |
| Odor | Odorless |
| Purity (Assay, min.) | 98.5% (technical/industrial), but often higher (up to 99.9% for some grades) |
| Nitrogen Content (min.) | 46.0% by weight (agricultural/fertilizer grade) |
| Moisture (max.) | 0.50% |
| Biuret Content (max.) | 1.0% (agricultural/fertilizer grade) |
| Free Ammonia (max.) | 0.05% (500 ppm) or 50–160 ppm depending on standard |
| Iron (Fe) (max.) | 1–5 mg/kg (1 ppm typical in agricultural grade) |
| Particle Size (Granular) | 90% between 2–4 mm (varies by standard) |
| Melting Point | 132–133°C |
| Specific Gravity | ~1.33–1.35 (solid at 20°C) |
Applications
Urea is primarily used as a nitrogen-rich fertilizer in agriculture, supporting plant growth by releasing ammonium and nitrate ions into the soil. It also serves as a raw material for producing urea-formaldehyde resins, adhesives, and plastics. In medicine, urea is found in dermatological creams for hydration and nail debridement. Other applications include deicing roads, reducing NOx emissions in diesel engines, enriching animal feed, serving as a flame retardant, and improving textile processing. Urea is also used in soaps, hair removal products, and laboratory protein studies.
Key factors influencing global urea prices include raw material costs—especially natural gas, which accounts for 60–80% of production expenses—and fluctuations in energy prices. Supply chain disruptions, geopolitical events, and regulatory or environmental policy changes also play significant roles. Technological advancements in fertilizer management and shifting agricultural practices further impact pricing. Additionally, global demand from major agricultural producers, along with seasonal planting cycles, drives volatility and influences market trends, making urea prices highly responsive to both supply and demand dynamics.
Urea availability directly shapes pricing trends: when supply is tight due to production outages, logistics disruptions, or export restrictions, prices tend to rise as demand outstrips supply. Conversely, ample inventories or reduced demand—often from weather impacts or shifts to alternative fertilizers—can lead to price declines. Market volatility is further influenced by seasonal agricultural cycles, with planting seasons typically driving up prices if supply is constrained.
Urea prices vary regionally due to differences in raw material costs, supply-demand balances, government policies, and logistics expenses. For example, China’s urea prices dropped in 2025 due to oversupply and export restrictions, while Southeast Asia and India saw price increases from strong demand and regional supply disruptions. These variations compel procurement managers to prioritize reliable suppliers, consider logistics costs, and adjust purchasing timing based on regional price trends and potential supply chain risks for cost-effective sourcing.
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