Urea Prices Fell Last Week

Nitrogen fertilizer prices remained volatile on the back of the volatility in the input prices of natural gas. Urea, one of the most common nitrogen fertilizers, was broadly lower in the week ending January 19.

Last week, the prices of granular urea at three locations ended in negative territory. In Egypt, granular urea prices fell by ~3.8% week-over-week to $256 per metric ton from $266 per metric ton. In NOLA (New Orleans), the prices of granular urea fell by 2.1% week-over-week to $217 per metric ton from $221 per metric ton. Players (MOO) such as CF Industries (CF), Nutrien (NTR), Terra Nitrogen (TNH), and CVR Partners (UAN) are most active in this region. Similarly, granular urea prices in the Middle East fell 1.7% week-over-week to $239 per metric ton from $243 per metric ton a week ago.

Prilled urea prices have followed a similar trend. Prilled urea prices in Yuzhny, Ukraine, fell by 44 basis points week-over-week to $224 per metric ton from $225 per metric ton.

Urea prices are also in negative territory year-over-year. In Egypt, urea prices were down 10% year-over-year from $285 per metric ton, while in NOLA, granular urea prices were down 6% year-over-year from $230 per metric ton. In the Middle East, prices fell 7% year-over-year from $258 per metric ton and in Yuzhny, prices fell 9% from $247 per metric ton.

Next, we will discuss the prices for natural gas, which is the key input for gas-based nitrogen fertilizer producers.