The Urea market has prevailed optimistic trend throughout July 2023 in the Global market. However, feedstock Ammonia prices observed a downturn during the same period. Reviving demand from the end-user fertilizer market substantiated the current prevailing price trend.

Fertilizer consumption, including Urea, in Brazil has been increasing significantly, making Brazil the top spot in the world market to export corn. As indicated by one of the key players, CF fertilizers consumption of Urea and other fertilizers in Brazil will stay robust this year, supported by higher corn plantations. However, as per data, imports of Urea in Brazil declined by a margin of 9% in the first half of this year but are expected to improve in the forthcoming months as the country's favorable climate may encourage demand for Urea from the end-user fertilizer sector. This, in turn, has prompted consumers to stock up on inventories in the wake of heightened demand in the forthcoming months. However, severe rainfall in the southern region of Brazil has been a setback for many farmers.

Further, Urea prices have surged in India in the same time period. This price escalation can be attributed to heightened demand from the downstream fertilizer sector, driven by the prevalence of pest attacks among farmers in various regions due to adverse climatic conditions. Additionally, disruptions in supply chains have been documented. By the month's end, a severe Urea shortage was observed in Telangana. However, it is worth noting that the feedstock Ammonia and the upstream Natural Gas prices have continued to decline within the country.

In the USA, the surge in the price of nitrogenous fertilizer, including Urea, was mainly attributed to the revision in procurement orders from the international market. Consumers from India returned to the market to make bulk purchases for the ahead coming winter planting season. Further, demand from the regional market has witnessed a modest alleviation. However, the country's current drought and excessive heat condition has led to a grasshopper attack.

Moreover, the European market is currently experiencing an escalation in prices, primarily attributed to the disruption in the Ammonia pipeline, resulting in the withdrawal of the Russian Federation from the grain agreement. Additionally, a notable incident involved the damage of 60,000 tons of fertilizers at the Odesa port in Ukraine, further contributing to the price surge. Driven by disruption in the supply chain, prices hiked in many European countries, including Germany and Belgium.

According to  ChemAnalyst, a notable shift in Urea prices is anticipated in the upcoming months in the global market, backed by increasing feedstock Ammonia and upstream Natural Gas prices. Further, reviving demand from the end-user fertilizer market may also lead to increased prices of Urea in the global market.