Fertilizer prices jump $20 in a week as global urea market tightens

The global fertilizer market is experiencing a fresh price shock, with urea prices rising by $20 per ton over the past week. Strong demand from Asia and limited supply have intensified competition for nitrogen fertilizers ahead of the upcoming spring planting season.

A key signal for the market came from a tender by QatarEnergy, which sold 45,000 tons of granular urea for February delivery at $410 per ton FOB. This marked a sharp increase compared with deals concluded just a week earlier and highlighted growing tightness in global availability.

Demand is being driven primarily by India and Australia, which are actively securing volumes from the Middle East and regions east of the Suez Canal. As a result, European markets are coming under pressure, while prices in Southeast Asia are already approaching $415 per ton, raising concerns among farmers about further cost increases.

Against this backdrop, the European Commission is considering the temporary suspension of import duties on fertilizers. The proposal includes ammonia and urea, aiming to improve access to cheaper supplies and ease the burden on the agricultural sector, which is already facing high energy and carbon-related costs.

Analysts note that even a removal of tariffs may only partially stabilize the market. If strong Asian demand persists and supply remains constrained, fertilizer prices are likely to continue rising, ultimately increasing production costs for farmers and pushing food prices higher in 2026.

Tags: prices, fertilizers