China Resumes Urea Exports! FOB Price Floor Set at USD 660 Per Metric Ton

Multiple industry sources confirmed that several domestic manufacturers have secured export quotas for urea covering the period from June to August on May 26. While full details are yet to be released, this move signals China’s return to the global urea market.

According to industry information provider Profercy, minimum export FOB prices have been set: USD 660 per metric ton for prilled urea and USD 670 per metric ton for granular urea.

The global urea market is closely monitoring China’s export developments. Previously, geopolitical tensions in Iran disrupted shipping through the Strait of Hormuz and curtailed urea production capacity across the Gulf region, tightening global supply and driving up international prices. Notably, India’s Potash Corporation awarded a record 2.5 million metric tons urea tender in April at prices ranging from USD 935 to 959 per metric ton, further propping up high market levels.

Nevertheless, such price levels are unacceptable for most global buyers, leading to delayed procurement plans and slumping purchasing sentiment. International urea prices have since come under pressure, with major FOB benchmark prices falling below USD 700 per metric ton — though still higher than average levels recorded in previous years. Against this backdrop, China’s urea export policies will be a key factor shaping global market trends.

“China’s urea exports will ease supply tightness in the international market,” said Zhang Lingli, analyst at ICIS Information. She noted that China’s export resumption will weigh on global urea prices. In the short term, however, India is likely to launch new import tenders, creating a mixed impact on market prices. Ms. Zhang predicted that China’s export news will not trigger drastic fluctuations in the short run, yet it will cap price gains over the medium to long term.

Source: AgriGoods Herald