The price of urea depends primarily on the balance between its supply and demand in the market, production costs, and the level of competition in the market.
What is the current price of urea?
How much does a tonne of urea cost in 2022? How much is a kilo of urea?
Urea Middle East price was between 350 USD to 400 USD in 2022.
However, as a rule of thumb, urea Middle East price depends on many factors, which you can see below:
|Factors Affecting Urea Price||Description|
|Supply and demand||The balance between the availability of urea and the demand for it. If the demand for urea is high and the supply is low, the price will increase. |
Conversely, if the demand is low and the supply is high, the price will decrease.
|Production costs||The cost of producing urea, which includes the cost of raw materials, energy, labor, and other expenses, can impact the final price.|
|Competition||The number of competitors in the market and the level of competition among them can also impact the price of urea. |
When there is intense competition among suppliers, it may lead to lower prices.
|Government regulations and policies||Government policies and regulations, such as import/export duties, taxes, subsidies, and regulations on production and distribution can also affect the price of urea.|
|Currency exchange rates||Urea is a globally traded commodity, and fluctuations in currency exchange rates can impact its price.|
|Weather conditions||Weather conditions can impact the demand for urea and its availability, as it is a critical component of fertilizers used in agriculture.|
|International trade and politics||International trade agreements, geopolitical factors, and global events can also impact the price of urea.|
Now, let’s look briefly at the interesting article “Influence of COVID-19 pandemic on fertilizer companies: The role of competitive advantages” published in Science Direct.
The global fertilizer sector is impacted by various macroeconomic elements that contribute to a consistent increase in the need for fertilizers. The factors in the list below are crucial for steady global fertilizers consumption pattern:
- population increase
- diminution of land suitable for agriculture
- improvement of the world GDP
- changes in diet
- alternative uses of crops
Urea Price from 2015 to 2020
As mentioned in Statista, if we investigate urea price from 2015 to 2020, urea price stood at its highest rate in 2015, 278 USD.
The next year, 2016, urea price lowered to 194 USD.
After that, from 2017 to 2020, it increased and the urea price average was over 200 USD every year. You can see the exact price in the chart below.
Chemical urea is generally applied in the agro-industry as a fertilizer and as an additive in animal feed, with its primary function being the provision of nitrogen to improve leafy growth and aid in photosynthesis.
Urea futures are actively traded on the Chicago Board of Trade (CBOT), allowing producers, large consumers, and speculators to manage the risk of price fluctuations. Trading Economics displays Urea prices based on financial instruments such as over-the-counter (OTC) and contract for difference (CFD).
Urea Price Forecast
Statista forecasted the urea price to stand above 300 USD from 2030 to 2035. However, it is just a forecast and an epidemic like COVID-19 may change everything!
The COVID-19 pandemic has had a considerable impact on many industries worldwide, but the fertilizer industry has demonstrated a certain degree of resilience in its supply chain despite the crisis.
The urea price will be 304 USD in 3030 and 330 USD in 3035 as forecasted by Statista. In 2023 and 2024, it is forecasted to remain under 300 USD, respectively 275 USD and 280 USD.
Finally, in the current year, 2023, the urea price is predicted to be 300 USD on average.
What is your prediction of urea Middle East price and urea average price in the world in 2030?!
Writer: Encieh Arbabi
Sales Manager at Amoot Iranian Trading Company