Global - Africa
Uncertainty Driving Prices Higher and Higher
Global urea markets have experienced a sharp and rapid price escalation—driven by heightened geopolitical tensions following the outbreak of the Iran–Israel conflict last Friday. In a matter of days, prices have surged by nearly $100 per tonne across key origins, as uncertainty grips supply chains and traders reassess risk exposure.
Middle East: A major Saudi Arabian producer is reported to have concluded a deal at $450/tonne FOB for granular urea July loader, marking a $60 jump from prior levels.
North Africa: Offers have surged from initial trades at $475/tonne FOB to new highs touching $500/tonne FOB, reflecting tightening availability and bullish sentiment with about $100 a tonne increase since last Friday.
China: Chinese producers have entered the rally with offers initially heard at $400/tonne FOB, before quickly climbing to $440/tonne FOB amid strong regional demand and global uncertainty
The conflict, impacting a strategically critical region for global fertilizer production and global trade, is injecting severe volatility into the market. With no immediate resolution in sight, risk premiums are expanding, and procurement strategies are being re-evaluated across the board. Market participants are bracing for further disruptions as geopolitical developments continue to unfold.
AFRIQOM Market Reporter