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.
Urea (Granular) at a Glance
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.
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.
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.
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.
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