During the inaugural week of April 2025, the global Urea market remained stable. This pessimism in the Urea market is primarily attributed to a variety of factors including sufficient inventories and lower than expected purchasing amidst persistent weather woes across the globe posing to be a potential threat for the consumers.

In Malaysia, the Urea prices experienced a marginal downturn during the review period, primarily attributed to a narrowed disparity between supply and demand. On the supply front, domestic production remained sufficient, supported by the smooth operation and the consistent availability of feedstock ammonia, Further, the Malaysian government has proposed 30% increase in port tariffs. Historically, Malaysian ports have provided competitive pricing when compared to their regional peers, like Singapore and India.  This benefit is in jeopardy due to the proposed tariff increase, which could increase the cost differential with ASEAN neighbors and add to the accumulated urea inventories at domestic ports.

Additionally, the first week of April 2025 has seen a persistently low level of urea purchasing activity.  Traders were content with the current inventory levels and showed no interest in new spot shipments.  The country's ongoing consequences of the intense heat, which had a major impact on crop yields and quality, are another factor contributing to this cautious demand prognosis.  To lessen their reliance on ammonia-based fertilizers, many farmers have responded by switching to growing heat-resistant crop varieties that frequently call for alternate fertilizing techniques.

In a similar vein, prices fell on the Russian market.  Due to the disruption of traditional trade flows caused by the European Union's decision to impose anti-dumping tariffs on fertilizer originating from Russia, the regional market experienced a stockpiling of inventories in order to maintain a sufficient domestic supply.  In the meantime, Urea's purchase activity remained muted.

Meanwhile, in the North American market Urea prices remained stable in face of balanced gap between demand and supply. Most regions in the country are reportedly well-stocked for the whole month, with adequate inventory levels ensuring continuity of supply. On the demand side, despite of the fact that the region is approaching the planting season for key crops such as rice, peanuts, and sorghum, procurement has remained subdued. This pessimism is attributed to the adverse weather conditions followed by unseasonably cold temperatures and snowstorms impeding the fieldwork and delaying fertilizer application.

According to ChemAnalyst, the price of Urea is expected to keep fluctuating in the forthcoming months. Anticipated revival in demand for the Urea from the prominent end-user fertilizer market may lead to price surge however, ongoing geopolitical tensions may shape the future otherwise.