Urea prices fall to their lowest level since the start of the Iran war amid oversupply

Global urea prices have dropped sharply after their spring rally, returning to levels last seen before the escalation of the conflict involving Iran. According to Bloomberg Green Markets, granular urea prices in New Orleans fell to $453.50 per ton, the lowest level since February 6 and 36% below the mid-April peak.

Earlier this year, nitrogen fertilizer markets surged on concerns over potential supply disruptions linked to the conflict around Iran and risks to shipping through the Strait of Hormuz. Urea is the world’s most widely used nitrogen fertilizer, and nearly half of global exports originate from countries affected by geopolitical tensions in the region.

However, the market is now facing different pressures. Demand for fertilizers in the United States has weakened significantly following the completion of most spring planting activities. At the same time, diplomatic efforts aimed at stabilizing the situation around the Strait of Hormuz have eased fears of major supply disruptions.

Bloomberg Intelligence analysts said that abundant supply and weak demand continue to weigh on prices. In some cases, domestic urea prices in the United States have fallen below those in import-dependent countries such as Brazil, potentially boosting U.S. export competitiveness.

Price declines have also been recorded in other regions. Egyptian urea quotations have fallen to their lowest level since late February, although they remain considerably higher than U.S. prices. Meanwhile, major nitrogen fertilizer producers, including CF Industries and Nutrien, have felt the impact of market volatility, with their shares retreating by about 20% from the highs reached in March.

Tags: prices, fertilizers