Commodity Brokerage / Fertilizers / Urea

Fertilizers

Urea

Urea is the world's most widely traded nitrogen fertilizer, sold in granular and prilled grades across major agricultural markets.

MARKET REFERENCES

How the market commonly references price

There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.

  • FOB Middle East urea
  • FOB Egypt / North Africa
  • CFR India tender market
  • CFR Brazil and other destination assessments

TYPICAL COMMERCIAL STRUCTURE

How physical pricing is often built

Spot cargoes are often negotiated against a regional FOB or CFR benchmark ± origin/quality differential. India purchases are frequently conducted through tenders on a CFR basis; suppliers work back to an FOB netback after freight.

PRICE DRIVERS

What moves the physical differential?

  • Natural-gas cost
  • China export availability
  • India tender demand
  • Seasonal application
  • Freight

PHYSICAL TRADE

Commercial considerations

Granular versus prilled specification, biuret, moisture, bagging and delivery basis are important commercial details.

The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.

Market methodology reference: view source / methodology

PHYSICAL COMMODITY BROKERAGE

Discuss a Urea requirement.

Share the specification, quantity, origin or destination, delivery basis and timing.

Contact AZA Green