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Urea Price Trend Analysis 2026: Historical Prices, Price Drivers, Supply Demand Analysis, Market Insights & Latest News
Written ByPragati Agarwal
Latest Development
Coal Demand Rises on Energy Crisis
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Urea Price Trend Q2 2026
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Urea | China | FOB | USD 267.50/MT | May 2026 |
| Urea | India | CIF | USD 334.84/MT | May 2026 |
| Urea | USA | FOB | USD 454.03/MT | May 2026 |
| Urea | Brazil | CIF | USD 586.03/MT | May 2026 |
| Urea | Canada | CIF | USD 454.03/MT | May 2026 |
| Urea | China | FOB | USD 272.17/MT | April 2026 |
| Urea | India | CIF | USD 322.06/MT | April 2026 |
| Urea | USA | FOB | USD 596.84/MT | April 2026 |
| Urea | Brazil | CIF | USD 631.84/MT | April 2026 |
| Urea | Canada | CIF | USD 596.84/MT | April 2026 |
Stay updated with the latest Urea prices, historical data, and tailored regional analysis
- Urea prices in Q2 2026 moved unevenly, with early gains driven by Gulf supply disruption and later softness linked to improved China export expectations.
- Feedstock pressure came from LNG and ammonia supply issues, which affected nitrogen output in import-dependent markets.
- Demand was supported by Indian tender buying and seasonal crop needs, but weaker late-quarter agricultural and industrial offtake capped price strength.
Asia
In China, Urea prices were ~RMB 1.86/kg in April and about RMB 1.81/kg in May, showing a ~2.6% decrease. The decline was driven by high operating rates, weaker downstream buying, and fading agricultural demand, which reduced price support. By mid-June, plant operating rates were above 90%, while compound fertilizer and industrial buyers purchased only as needed, keeping the market under pressure.
In contrast, India showed a firmer trend, with Urea prices at ~INR 30.56/kg in April and ~INR 31.81/kg in the subsequent month, reflecting a approx. 4.1% increase. The rise was supported by lower LNG availability, which affected domestic output and increased reliance on imports. The country’s April urea production stood at 20.98 LMT, while imports reached 5.83 LMT, indicating that although local supply remained supported, it was still exposed to Gulf shipping and gas-side disruptions.
Europe
European urea stayed cost-sensitive in Q2’26 because nitrogen fertilizer production remained closely linked to natural gas. Gas accounted for 70-80% of EU nitrogen fertilizer production costs, keeping local producers exposed to energy volatility. Early-quarter supply disruption from the Middle East supported import-security concerns, but prices later softened as buyers delayed fresh purchases and spring application demand was largely covered. Limited regional self-sufficiency kept Europe vulnerable, but weaker global sentiment after improved Asian supply expectations reduced the strength of the market.
North America
North American urea was supported early in Q2 by spring application demand and global supply disruption, but domestic production was steadier than in Europe. Regional nitrogen producers maintained strong operating rates, with ammonia production supported by reliable plant performance and lower-cost gas access. U.S. corn planted area was estimated at 95.3 million acres in 2026, keeping nitrogen demand large. However, the area was down from the previous year, which capped fresh urea buying after the main spring application window.
Analyst Insight
According to Procurement Resource, in the near term, urea prices may remain mixed. Import risk and gas-linked costs can support prices, while weaker seasonal demand and higher Chinese output may limit fresh gains.
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- Urea prices moved upward globally in Q1’26 as supply chains tightened and trade flows were disrupted, especially after the Strait of Hormuz crisis.
- Feedstock pressure increased because natural gas costs rose and transport became more expensive, which pushed production and landed costs higher.
- Downstream demand stayed firm in Asia due to spring planting and stockpiling, while buyers in other regions stayed cautious because of high input costs.
Asia
Urea prices in Asia followed a firm upward trend during Q1’26. In China, prices were about RMB 1.72/kg (Spot FD) in January and around RMB 1.86/kg in March, showing an increase of about 8.16% from January to March. The rise came from stronger downstream demand, stockpiling before Spring Festival, Indian tender activity, and active agricultural demand during spring planting. In March, geopolitical conflict in the Middle East strengthened the international urea market and supported domestic sentiment.
Trade disruptions through the Strait of Hormuz tightened regional supply, and China’s export quota controls removed a major relief source for Asia. India also faced strain because it uses nearly 40 million tonnes of urea annually, while its supply chain depends heavily on Gulf-linked imports and gas. Government dat a showed India had about 6.2 million tonnes of urea stocks in mid-March, which supported near-term supply but did not remove concerns about later-season availability.
Europe
In Europe, urea prices remained firm because disruptions around the Strait of Hormuz tightened fertilizer and gas flows. Around one third of global seaborne fertilizer volumes pass through the Strait, so reduced shipping availability increased freight, insurance, and replacement costs, which led to higher urea prices. European buyers also had to compete for limited cargoes as Gulf-linked exports became harder to secure. Demand stayed moderate, but the rise in import and production costs kept the market supported.
North America
In North America, urea prices also strengthened because global nitrogen supply became tighter and transport costs increased. The market was affected by the same shipping and energy disruption that lifted prices in Asia and Europe. Demand from agriculture remained steady, but buyers stayed cautious as high fertilizer costs raised affordability concerns. Global supply tightness and higher logistics costs kept upward pressure on the market.
About Urea
Urea is known to be a nitrogenous compound with a carbonyl group attached to amine groups with osmotic diuretic activity. Urea is formed in the liver via the urea cycle from ammonia and is also the product of protein metabolism. The administration of Urea elevates blood plasma.
Urea Product Detail
Chemical Formula
CH4N2O or CO(NH2)2
Molecular Weight
60.056 g/mol
Industrial Uses
Fertilisers, Important resins, Melamine, Melamine-Methanal resins
Synonyms
Carbamide, 57-13-6, Isourea, Carbonyldiamide
Supplier Database
QAFCO or Qatar Fertiliser Company, Yara International ASA, Koch Fertilizer, LLC, SABIC, OCI N.V., CF Industries Holdings, Inc., EuroChem Group AG, OSTCHEM, PotashCorp, China National Petroleum Corporation, Ruixing Group Co.,Ltd, Luxi Chemical Group Co., Ltd., Shandong Hualu-Hengsheng Chemical Co., Ltd., Sichuan Lutianhua Co., Ltd. (Lutianhua)
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Urea Production Processes
- Urea Production via Bosch-Meiser Urea Process; and via Phosgene
Bosch-Meiser Urea process involves two equilibrium reactions, where the first reaction is known as carbamate formation and the second one is known as urea conversion, which are exothermic and endothermic respectively. Procurement Resource also provides the production cost analysis of Urea.
Frequently Asked Questions
During Q1 2026, urea prices in China increased by approximately 8.1% from January to March. The rise was supported by strong agricultural demand ahead of the spring planting season, domestic stockpiling activity, and tighter export availability resulting from China's fertilizer export controls. Additional support came from geopolitical disruptions affecting global fertilizer trade flows and strengthening international market sentiment.
Quarter-on-quarter, urea prices in China increased by approximately 11.7% in Q1 2026 compared with Q4 2025. The increase reflected stronger seasonal agricultural demand, export restrictions that reduced international availability, higher coal and energy-related production costs, and tighter market sentiment following disruptions in global fertilizer supply chains due to Iran-Israel conflict.
The main factors affecting urea prices in Q1 2026 were seasonal agricultural demand, export restrictions, domestic supply management, and coal-based production economics. Spring planting demand supported fertilizer procurement, while China's continued controls on fertilizer exports tightened global supply expectations. Coal and energy costs also influenced producer margins and pricing decisions throughout the quarter.
The urea outlook for 2026 remains firm and volatile, supported by seasonal fertilizer demand, natural gas cost pressure, China’s controlled export availability, and uncertainty in Middle East supply routes. Prices may ease if Chinese exports improve and India’s new domestic urea plants reduce import pressure, but supply-chain risks, LNG availability, freight disruption, and government procurement needs are expected to keep the market sensitive through the year.
Major urea markets include China, India, the United States, Russia, Qatar, Saudi Arabia, Egypt, Indonesia, Iran, Oman, and Brazil. China and India are major consumers, while the Middle East and Russia are important export suppliers. Key companies include Yara International, CF Industries, Nutrien, SABIC, QatarEnergy, Ma’aden, OCI, EuroChem, Sinofert, China National Chemical Corporation, Indian Farmers Fertiliser Cooperative, and Rashtriya Chemicals and Fertilizers.
A major recent development in the urea market was China's continued management of fertilizer exports through quotas, shipment controls, and stricter inspections, which tightened global supply availability and supported international prices. At the same time, India's Ministry of Chemicals and Fertilizers announced that two new urea plants with a combined annual production capacity of 25.4 lakh tonnes were expected to commence operations shortly, strengthening domestic fertilizer availability and supporting the country's efforts to reduce import dependence. Together, these developments influenced regional supply expectations and global urea trade flows during 2026.
Urea is mainly produced from ammonia and carbon dioxide. Ammonia is usually produced from natural gas, which provides hydrogen and energy for the process. The value chain includes natural gas supply, ammonia production, carbon dioxide recovery, urea synthesis, concentration, granulation or prilling, bagging, bulk storage, logistics, distribution, and final use in fertilizers, resins, animal feed, and diesel exhaust fluid.
Urea is mainly sold as prilled urea, granular urea, technical-grade urea, feed-grade urea, and automotive-grade urea for diesel exhaust fluid. Granular urea is preferred for bulk blending and mechanized fertilizer application because it has better handling and spreading properties. Prilled urea is widely used in agriculture, while technical grades serve resins, adhesives, and industrial applications.
A key policy development affecting urea prices in 2026 was China's continued management of fertilizer exports through export quotas, shipment controls, and stricter inspections aimed at protecting domestic supply. These measures reduced international urea availability during the spring planting season and supported firmer global prices. The policy had a significant impact on import-dependent markets such as India and several Southeast Asian countries.
Procurement Resource employs a structured methodology combining primary research, secondary market data, analytical models, and validation processes to assess urea prices and trends. Price evaluations incorporate supply-demand dynamics, feedstock movements, trade flows, and value chain analysis, supported by continuous market monitoring to ensure accurate and reliable insights.
About the Author
Pragati Agarwal
Senior Business Insights Analyst
Delivering price trend analysis and procurement market insights at Procurement Resource, with expertise in identifying commodity patterns, supporting purchasing strategies, and improving cost efficiency through actionable market intelligence.
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