An adequate supply kept Urea prices down this week, particularly in the West. The price of large granular Urea decreased by 10% in the  European, the United States, and the Middle East market as a result of the efforts of traders and producers to secure sales. The Urea price falls slightly in the Asian market was mostly caused by the reduction in export possibilities caused by Southeast Asia's order demand and China's high domestic prices.

India's Urea bidding is anticipated to begin at the end of February, which is vital for stabilizing the global Urea market that was initially oversupplied. The next spot auction is typically anticipated to be delayed by India, which enhances market players' pessimistic mood. As India is the largest importer of Urea in the world so, if it releases its Urea tender, then the oversupply in the European and American countries might be compensated.

Although nitrogen fertilizer costs have declined by 40% since September 2022, the proportional decline in natural gas prices in Europe indicates that the supply has not diminished during this time. The price of natural gas is currently at a level that suggests it may continue to fall.

In February, there was not enough consumer demand to support the price. The majority of traders' and importers' sentiments remained negative, and thus prices will remain under pressure until demand materializes. Urea is currently in a poor supply and demand trend; however, both are projected to increase further in the future.

The agricultural demand season is approaching in almost all regions, but short-term unfavorable factors continue to dominate. Industrial demand has increased due to the increase in the operating rate of downstream industries. In the later period, as the peak season of fertilizer use for spring  ploughing approaches, agricultural Urea demand is expected to increase further

As per ChemAnalyst, Urea Demand is not as strong as anticipated, the worldwide market is still declining, coal costs are dropping, and the policy of maintaining supply and stabilizing prices is still in place.