Urea Prices, Pricing, Demand & Supply, Market Analysis | ChemAnalyst

For the Quarter Ending June 2023

North America

In the North American market, the second quarter of 2023 saw a decline in Urea prices due to decreasing prices of its feedstock Ammonia and upstream Natural Gas. The low water levels in the Mississippi River, caused by high temperatures, affected exports from the USA to other countries, leading to surplus availability of Urea in the market. Hesitant consumer behavior, rising inflationary pressure, and the global economic slowdown further impacted demand. The collapse of two major banks in the USA also contributed to the contraction of the market. Despite a slight revival in demand in May, it tumbled again in June. However, the Consumer Price Index of the USA showed a marginal rise, indicating a potential increase in the future.

APAC

Throughout the second quarter of 2023, Urea prices in the APAC region showed a downward trend. This was primarily influenced by declining demand from the end-user fertilizer segment, declining prices of feedstock Ammonia and upstream Coal, and reduced procurement orders from international markets like India and South Korea. Below-normal rainfall in India resulted in a decrease in Kharif sowing, further weakening the fertilizer market. China’s reduced exports and depreciating demand from the end-user market also contributed to the narrowed demand-supply gap and lower prices. The Purchasing Manager Index and industrial growth rate in China also declined during this period.

Europe

In the European market, the prices of Urea and other fertilizers have been impacted by the ongoing war between Russia and Ukraine, growing inflationary pressure, and economic slowdown. The European Central Bank’s decision to raise interest rates made buyers hesitant to make bulk purchases. The blast in the Ammonia pipeline in Russia led to surplus availability, while declined demand from the end-user fertilizer segment created a situation of oversupply. The Producers’ Price Index of the region also declined. Overall, the market situation for Urea remained bearish with low buying enthusiasm.

Get Real Time Prices of Urea: https://www.chemanalyst.com/Pricing-data/urea-1190

South America

Imported Urea prices in Brazil declined throughout the second quarter, mainly due to decreased prices in exporting countries like China and diminished demand from the end-user fertilizer market. The dry season in Brazil impacted farming activities and led to reduced purchasing activities from the fertilizer sector. The government’s decision to hike interest rates further discouraged bulk purchases. Despite sufficient availability, only a portion of the material was sold, resulting in a narrowed demand-supply gap.

Saudi Arabia

Similar to the global market trend, Urea prices in Saudi Arabia declined in the second quarter of 2023. Weak demand from the fertilizer industry and declining prices of feedstock Ammonia and Natural Gas contributed to this decline. Cheap shipments from the Russian Federation also forced market participants in Saudi Arabia to keep their prices low. Despite these challenges, there are plans to establish a fertilizer plant in the Kingdom to boost agricultural production.

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