Chemicals

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 240-280
  • Polymer Coated
  • FOB
  • CFR
  • CIF
At a glance

Urea (Granular), in brief.

Common origins
  • Saudi Arabia
  • Qatar
  • Iran
  • Russia
  • China
Common destinations
  • India
  • Brazil
  • United States
  • Thailand
  • Australia
Grades and specifications
  • Granular (46% N)
  • SGN 240-280
  • Polymer Coated
Incoterms
  • FOB
  • CFR
  • CIF
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 and 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.

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