Urea (Granular)

Granular urea is the world's most widely used nitrogen fertilizer, containing 46% nitrogen. The granular form (2-4mm particles) is preferred for bulk blending and direct application due to superior handling and reduced caking. Middle Eastern and North African producers benefit from low-cost natural gas feedstock.

Granular (46% N)SGN 240-280Polymer CoatedFOBCFRCIF
Quick Facts

Urea (Granular) at a Glance

Common Origins
Saudi ArabiaQatarIranRussiaChina
Common Destinations
IndiaBrazilUnited StatesThailandAustralia
Grades & Specifications
Granular (46% N)SGN 240-280Polymer Coated
INCOTERMS
FOBCFRCIF
Unit of Measure
Metric Tons
Price Drivers

What Moves Urea (Granular) Pricing

Granular urea prices off Argus and Fertecon FOB benchmarks (FOB Egypt, FOB Middle East, FOB Baltic, FOB Indonesia, FOB China). The natural gas-to-urea spread is the marginal cost driver — US, Russian, and Middle East producers benefit from cheap gas; Chinese and European producers run on higher gas costs. Indian state tender results (DAP and urea both) move global pricing materially. Chinese urea export policy (subject to inspection regime) is the dominant supply swing factor.

Contract Structure

How Urea (Granular) Cargoes Are Priced and Settled

Cargoes 5,000-50,000 tonnes per parcel, bagged (50 kg) or bulk. Pricing FOB origin against Argus or Fertecon. India MMTC and IPL tender awards set monthly price points. Letter of credit standard.

Quality & Disputes

Urea (Granular) Specifications and Dispute Practice

Specs: nitrogen 46% min, biuret 1.0-1.2% max, moisture 0.5% max, particle size (granular 2-4mm or 1-2mm). Disputes turn on biuret content (above-spec material damages crops via stunted growth), caking from moisture absorption in transit, and dust generation from prilled material.

Trade Flows

Where Urea (Granular) Comes From and Where It Goes

Top exporters: Russia (sanctions-affected since 2022), Qatar (QAFCO), Saudi Arabia, Iran (sanctions), Egypt, Algeria, Indonesia, Oman. Top importers: India (~10 Mt/year typical tender volume), Brazil, US (also a producer but net importer for some grades), Türkiye, Australia, Thailand. Chinese urea export curbs since 2021 have structurally tightened the market.

More in Chemicals

Urea (Prilled)

Prilled urea consists of small, spherical particles (1-2mm) formed by spraying molten urea into a prilling tower. While less popular than granular in blending operations, prilled urea is preferred for certain industrial applications including resin production and diesel exhaust fluid (DEF/AdBlue).

DAP

Diammonium Phosphate (DAP) is the world's most widely used phosphate fertilizer, providing both nitrogen (18%) and phosphorus (46% P2O5). It is water-soluble and suitable for a wide range of soils and crops. China, Saudi Arabia (Ma'aden), and Morocco (OCP) are the major producers.

MAP

Monoammonium Phosphate (MAP) is a phosphate fertilizer with a higher phosphorus-to-nitrogen ratio (11-52-0) than DAP, making it preferred for alkaline soils and crops with lower nitrogen requirements. It is also a key ingredient in compound NPK fertilizer production.

Potash (MOP)

Muriate of Potash (MOP, potassium chloride) is the dominant potassium fertilizer, containing 60-62% K2O. It is essential for crop health, water regulation, and disease resistance. Canada (Saskatchewan), Russia, and Belarus hold the vast majority of global reserves. Canpotex and BPC are the key export cartels.

Ammonia (Anhydrous)

Anhydrous ammonia is a pungent, corrosive gas (NH3) that is the fundamental building block of nitrogen-based fertilizers and a key industrial chemical. It is shipped as a pressurized liquid in specialized tankers. Trinidad, Saudi Arabia, and Russia are major exporters to consuming markets.

Sulphuric Acid

Sulphuric acid (H2SO4) is the world's most produced industrial chemical, essential for phosphate fertilizer manufacturing, metal processing, petroleum refining, and wastewater treatment. Smelter acid (a byproduct of copper and zinc smelting) competes with virgin acid produced from elemental sulfur.

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