The Urea Price Trend in Q2 2026 showed a sharp rise across major global markets, followed by a significant price correction toward the end of the quarter. Urea prices increased by approximately 21% to 51% across several regions during the quarter as tight supply, strong agricultural demand, higher transportation costs, and geopolitical tensions affected the global fertilizer market.Β
However, June brought a sudden change in direction, with prices declining by around 30% to 42% in many markets as supply conditions improved and buying interest softened.
ππPlease submit your query to get urea price trend, forecast and market price analysis: https://www.price-watch.ai/book-a-demo/Β
Urea is one of the most widely used nitrogen fertilizers in agriculture. Farmers depend on it to support crop growth and improve agricultural productivity. It is particularly important during planting seasons when fertilizer demand increases. Because of its importance, changes in the Urea Price Trend can affect farmers, fertilizer distributors, importers, exporters, and agricultural businesses.
During Q2 2026, the global market experienced considerable uncertainty. Disruptions to shipping routes around the Strait of Hormuz, changes in export availability, and higher freight and insurance costs contributed to rising prices. At the same time, buyers increasingly looked for supplies from countries outside the Gulf region. By June, improved availability and easing supply pressures contributed to a sharp correction in Urea Prices.
Global Urea Price Trend in Q2 2026
The global Urea Price Trend during the second quarter of 2026 was strongly bullish for much of the period. Prices moved upward in Asia Pacific, the Middle East, Europe, and India as buyers faced limited supply and uncertainty about future shipments.
The conflict involving Israel, the United States, and Iran, along with disruptions around the Strait of Hormuz, created challenges for fertilizer shipments from the Gulf region. Several important exporting countries faced increased shipping risks, delays, and higher transportation expenses. These developments affected the amount of fertilizer available to international buyers.
As a result, buyers began exploring alternative sources, including China, Indonesia, Malaysia, and Russia. This shift increased competition for available cargoes and supported prices in markets that could continue exporting reliably.
However, the market changed significantly toward the end of the quarter. As shipping conditions improved and supplies became more accessible, buyers became less willing to accept the high prices seen earlier. June recorded substantial monthly declines across many granular fertilizer markets.
The Q2 experience demonstrates that a sharp increase during a quarter does not necessarily mean prices will continue rising. Supply conditions, international trade, and changing buyer confidence can quickly reverse market direction.
Urea Price Chart and Market Movement
The Urea Price Chart for Q2 2026 would show a strong upward movement during much of the quarter, followed by a steep decline in June. This pattern was visible across several major exporting and importing markets.
China, Indonesia, and Malaysia recorded quarterly price increases of approximately 38%. Russia registered an increase of around 42%, while Indian granular fertilizer prices at Kandla increased by approximately 43%. Domestic technical-grade and automotive-grade urea prices in India also recorded substantial quarterly gains.
The Middle East experienced a different balance between quarterly gains and June corrections. Oman and Qatar recorded quarterly increases of approximately 21%, while Saudi Arabia also registered a gain of around 21%. The UAE recorded an increase of approximately 22%.
Although the percentage changes varied, the overall pattern was similar: supply concerns supported prices for much of Q2, while improved availability and weaker buying interest contributed to a sharp correction at the end of the quarter.
When reviewing a Urea Price Chart, it is important to distinguish between quarterly changes and monthly movements. A market can finish the quarter above its starting level even after experiencing a substantial decline in the final month.
For example, Indian granular fertilizer-grade urea at Kandla increased by approximately 43% during Q2, despite falling by 41% in June compared with May. This difference highlights how strongly prices had risen earlier in the quarter.
China Urea Price Trend: Granular Fertilizer Grade
China remained an important part of the global urea market during Q2 2026. The Urea Price Trend for granular fertilizer-grade material exported from Shanghai was strongly bullish, supported by firm natural gas costs, international buyer interest, and supply constraints affecting competing exporting regions.
Disruptions to Gulf shipping routes encouraged international buyers to consider supplies from alternative origins. This increased interest in Chinese cargoes and helped support export prices during much of the quarter.
However, conditions changed in June. Agricultural demand eased, and improved availability from other exporting countries reduced pressure on Chinese suppliers. Granular fertilizer-grade Urea Prices in China fell by approximately 30% month over month.
Despite this sharp correction, the market recorded an overall quarterly increase of approximately 38%. This indicates that the earlier price increases were substantial enough to keep the quarter’s overall movement positive.
Technical-grade urea at Qingdao followed a different pattern. Softer industrial and automotive-related demand limited upward momentum, while improved supply availability helped prices stabilize. In June, technical-grade prices increased by approximately 1.5% month over month as trade flows gradually normalized.
Automotive-grade urea also remained relatively firm because export restrictions limited international availability. Prices increased by approximately 1% in June. These differences show why buyers should assess fertilizer-grade, technical-grade, and automotive-grade urea separately rather than treating all grades as one market.
India Urea Price Trend: Kandla and Vadodara
India experienced significant changes in the Urea Price Trend during Q2 2026. Demand associated with the upcoming Kharif planting season supported interest in fertilizer supplies, while import availability and transportation disruptions influenced market prices.
Granular fertilizer-grade urea imported through Kandla, with Oman identified as the origin in the supplied market assessment, recorded a quarterly increase of approximately 43%. Firm agricultural demand and shipping constraints affecting Gulf-origin cargoes contributed to the increase.
However, the market corrected sharply in June. Urea Prices at Kandla declined by approximately 41% compared with the previous month as Gulf tensions eased and cargo availability improved.
Technical-grade urea at Vadodara followed a different pattern. Firm domestic feedstock costs, constrained imports, and steady industrial demand supported a quarterly increase of approximately 51%. In June, prices declined by around 13% as import availability improved.
Automotive-grade urea at Vadodara also recorded a strong quarterly increase of approximately 45%. Limited access to imported material encouraged greater reliance on domestic production. By June, improved availability contributed to a monthly decline of approximately 12%.
At Nhava Sheva, imported technical-grade urea linked to Chinese supplies recorded a modest decline of approximately 1% in June. This reflected softer Chinese export pricing and comparatively stable cargo availability.
These regional differences are important for Indian buyers. Import-dependent businesses may respond quickly to changes in international offers and freight costs, while domestic buyers may also face pressure from feedstock expenses, local production, and regional demand.
Indonesia and Malaysia Urea Price Trend
Indonesia and Malaysia recorded strong quarterly gains in granular fertilizer-grade urea during Q2 2026.
In Indonesia, prices at Tanjung Perak increased by approximately 38% over the quarter. Firm natural gas-related costs, export demand from Asia Pacific buyers, and the search for alternative supplies supported the market.
Indonesian shipments were less directly exposed to the affected Gulf shipping route. This helped the country attract additional interest from buyers seeking alternatives to disrupted supply sources.
Nevertheless, the market experienced a substantial correction in June. Urea Prices in Indonesia declined by approximately 33% from the previous month as global supply availability improved and buying interest weakened.
Malaysia followed a similar pattern. Granular fertilizer-grade urea prices at Port Klang increased by approximately 38% during Q2. Firm production costs and demand from Southeast Asian buyers supported prices during much of the period.
In June, Malaysian prices also declined by approximately 33% month over month. The correction reflected easing supply concerns and reduced urgency among international buyers.
For importers and distributors, these markets demonstrate the importance of monitoring both export availability and the timing of purchases. Alternative supply origins can become more expensive when international buyers compete for the same cargoes, but prices can fall quickly when additional supplies become available.
Middle East Urea Price Trend: Oman, Qatar, Saudi Arabia, and UAE
The Middle East experienced strong supply pressure during Q2 2026 because of its important role in global fertilizer exports and its exposure to disruptions around the Strait of Hormuz.
In Oman, granular fertilizer-grade urea prices at Sohar increased by approximately 21% during the quarter. Shipping challenges, higher insurance costs, and uncertainty surrounding export schedules supported prices. In June, prices fell by approximately 42%, representing one of the sharpest monthly corrections among the Gulf markets covered in this assessment.
Qatar recorded a quarterly increase of approximately 21% for granular fertilizer-grade urea at Mesaieed. Disruptions to vessel movements and increased shipping risks limited the ease with which cargoes could reach international buyers. In June, prices declined by approximately 41% as market conditions improved.
Saudi Arabia recorded a quarterly increase of approximately 21% for granular fertilizer-grade urea exported from Jubail. Supply uncertainty and higher transportation costs supported the market for much of the quarter. Prices then fell by approximately 41% in June.
In the UAE, granular fertilizer-grade urea prices at Ruwais increased by approximately 22% during Q2. Shipping constraints and higher freight and insurance costs contributed to the increase. June prices declined by approximately 41% as supply conditions improved.
These markets show how geopolitical events can influence fertilizer prices even when production continues. Buyers must consider not only the price offered by a supplier but also shipment schedules, freight expenses, insurance, and the possibility of delays.
Russia Urea Price Trend: Ust-Luga
Russia recorded a strong increase in granular fertilizer-grade urea prices during Q2 2026. Export prices at Ust-Luga increased by approximately 42% over the quarter.
The increase was supported by steady export flows, natural gas-related feedstock costs, and stronger international interest in supplies from outside the Gulf region. Buyers looking to reduce their exposure to disrupted shipping routes considered alternative origins, helping support Russian export prices.
However, the market also experienced a correction toward the end of the quarter. As global cargo availability improved, competition for supplies eased and buyers became more cautious.
In June, Russian Urea Prices declined by approximately 35% compared with May. Even with this reduction, the quarterly increase remained substantial.
Russia’s experience highlights the connection between international trade flows and regional fertilizer prices. A country does not need to experience the same shipping disruptions as another region to be affected by them. Changes in buyer preferences can redirect demand toward alternative suppliers and influence export offers.
Urea Price Index: Understanding Market Direction
The Urea Price Index helps buyers and market observers understand how prices change over time. By comparing price movements across regions, grades, and trade terms, an index can provide a clearer picture of whether the market is strengthening or weakening.
During Q2 2026, the broad market direction was upward for much of the quarter. However, June brought a significant reversal, with declines of approximately 30% to 42% across many granular fertilizer markets.
The Urea Price Index should be interpreted alongside information about product grade, location, and delivery terms. For example, granular fertilizer-grade urea sold for export from a Gulf port is not directly equivalent to technical-grade urea produced domestically in India.
A useful comparison should account for whether prices are quoted on an FOB or CIF basis. FOB prices generally relate to the cargo at the exporting port, while CIF prices include the cost of freight and insurance to the destination port. Differences in transportation expenses can therefore create different price movements between exporting and importing markets.
For purchasing teams, the index can help identify major market turning points, review supplier offers, and compare current prices with historical movements. However, it should be used alongside actual supplier quotations and current logistics information rather than as the sole basis for a purchasing decision.
Key Factors Affecting Urea Prices in 2026
Several important factors influenced Urea Prices during Q2 2026.
- Natural gas costs
Natural gas is an important feedstock for urea production. Changes in gas costs can affect manufacturing expenses and influence the prices producers are willing to accept.
- Agricultural demand
Fertilizer demand often increases before major planting seasons. In India, expectations surrounding Kharif cultivation supported buying interest during Q2.
- Geopolitical developments
The conflict involving Israel, the United States, and Iran, together with disruptions around the Strait of Hormuz, affected shipping confidence and supply availability. These events increased uncertainty for exporters and importers.
- Freight and insurance costs
Higher shipping expenses can raise the delivered cost of imported fertilizer. When vessel movements are disrupted or routes become riskier, transportation costs can influence purchasing decisions.
- Export restrictions
Restrictions on particular urea grades can reduce international availability and increase reliance on alternative suppliers. Technical-grade and automotive-grade urea may therefore behave differently from conventional granular fertilizer-grade material.
- Changes in global supply
When additional cargoes become available, buyers have more choices and sellers may face greater competition. This was an important factor behind the sharp June correction across many markets.
- Purchasing behaviour
When buyers expect further increases, they may bring purchases forward. When prices begin falling, they may delay orders in anticipation of better offers. These decisions can amplify both price increases and corrections.
ππPlease submit your query to get urea price trend, forecast and market price analysis: https://www.price-watch.ai/book-a-demo/Β
Urea Price Forecast: What Buyers Should Watch Next
The Q2 2026 market movement suggests that supply availability, agricultural demand, energy costs, and shipping conditions will remain important indicators for the direction of the Urea Price Trend.
After the sharp June correction, buyers should avoid assuming that prices will automatically return to their earlier highs. The next market direction will depend on whether supply conditions continue to improve, whether demand strengthens, and whether transportation routes remain reliable.
If global supply remains comfortable and buyers continue purchasing cautiously, prices may face further pressure. On the other hand, renewed shipping disruptions, higher natural gas costs, or stronger-than-expected fertilizer demand could support a recovery.
Regional differences will also matter. Indian buyers should monitor domestic production, import availability, seasonal demand, and port-specific landed costs. International traders should compare offers from China, Southeast Asia, Russia, and the Middle East while accounting for grade specifications and shipment risks.
The Urea Price Chart and Urea Price Index can help businesses identify changes in market direction, but future prices cannot be predicted with certainty. A practical approach is to review market information regularly, compare quotations from different origins, and avoid making purchasing decisions based on a single month’s movement.
The Urea Price Trend in Q2 2026 was marked by a strong rise followed by a sharp correction. Prices increased across major markets as geopolitical tensions, shipping disruptions, firm agricultural demand, and supply constraints affected the global fertilizer trade. China, Indonesia, and Malaysia recorded quarterly gains of around 38%, while Russia and India experienced increases of approximately 42% and 43%, respectively, in the specified markets.
The Middle East also recorded significant quarterly gains, but June brought steep declines as supply conditions improved. Technical-grade and automotive-grade urea followed different patterns from conventional granular fertilizer because of differences in demand, export restrictions, and domestic availability.
For farmers, distributors, importers, and procurement professionals, the main lesson is that fertilizer markets can change quickly. Monitoring Urea Prices, reviewing the Urea Price Chart, and following the Urea Price Index can help businesses understand market movements and compare purchasing opportunities.
Looking ahead, the market will depend on the balance between supply and demand, energy costs, shipping conditions, and agricultural requirements. Careful monitoring and informed purchasing decisions will remain important for managing urea costs in an uncertain global market.
About Price Watchβ’
Price Watchβ’ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watchβ’ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics.
The Price Watchβ’ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watchβ’ transforms market volatility into actionable opportunity.
Futura Tech Park,
C Block, 8th floor 334,
Old Mahabalipuram Road,
Sholinganallur, Chennai, Tamil Nadu, Pincode – 600119.
ππ’π§π€ππππ§: https://www.linkedin.com/company/price-watch-ai/
π πππππ¨π¨π€: https://www.facebook.com/people//61568490385598/
ππ°π’ππππ«: https://x.com/pricewatchai
ππππ¬π’ππ: https://www.price-watch.ai/Β