CATEGORY

Urea

Urea represents half of the total nitrogen output and will contribute to two-thirds of the projected ammonia capacity increment over the next five years.

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July 19, 2022
alert level: Medium

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Savings Achieved

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The average annual savings achieved in Urea category is 4.70%

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The industry average payment terms in Urea category for the current quarter is 25.0 days

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    Urea Suppliers


    2,815
    Total Suppliers
    56
    Diverse Suppliers
    75
    Normalized Supplier Rating
    Urea Supplier

    Find the right-fit urea supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    BASF SE
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    1
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.


    Creditsafe Rating


    D/2

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    A 71 - 100

    Very Low Risk

    B 51 - 70

    Low Risk

    C 30 - 50

    Moderate Risk

    D 21 - 29

    High Risk

    E 0 - 20

    Not Rated


    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    59

    100
    Robust (1)
    ESG Perfomance (/100)
    Environment
    60
    Social
    59
    Governance
    57
    6 Domains Performance (/100)
    Business behaviour
    62
    Human rights
    68
    Community Environment
    42
    Corporate governance
    60
    Human resources
    61
    Security Scorecard
    82

    Threat indicators
    B
    83
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    D
    62
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    B
    80
    Application Security
    Detecting common website application vulnerbilities
    B
    81
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    B
    85
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    94
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    basf.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    17
    Workforce Health Safety Issues
    0
    Product Service Issues
    22
    Human Rights Issues
    3
    Production Supply Chain Issues
    35
    Environmental Non Compliance Flags
    74
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    21
    Fraud Issues
    8
    Labor Health Safety Flags
    12
    Regulatory Issues
    13
    Workforce Disputes
    6
    Sanctions
    0
    esg energy transition
    49
    Discrimination Workforce Rights Issues
    3
    esg controversies critical severity
    Yes

    Urea market report transcript


    Global Market Outlook on Urea

    The Urea market is set to experience a soft balance in the short term, moving to potential growing surpluses in the long term (until 2021–2022). Surplus situation is expected to persist during the next five years, reaching 8 percent of the potential supply availability

    The balance in the short term is resulting from China’s contraction in capacity and decline in export share, owing to “zero growth” policy in place for fertilizer demand, which largely impacts urea, since China has always been the dominant demand center (35 percent of the global demand); however, recent developments of poor economies of scale (high input coal costs) and tax reform (13 percent VAT on fertilizer) are keeping the global urea market in balance

    Demand Market Outlook for Major Urea Markets

    • N-Fertilizer value drivers have a profound impact on the urea market. Some of the major drivers that result in having an effect on urea:
    • Chinese coal prices -->Supply-driven price for urea
    • Change in grain inventory/price --> Urea demand Active value drivers of urea will impact other nitrogen fertilizer prices, since urea and its derivatives are the most commonly used fertilizers across major markets, like India, North America, and Brazil
    •  The increasing demand in fertilizers will help propel the growth of the urea market. The fertilizer and fertilizer chemicals markets are likely to expand in the future.

    • The global urea market demand is expected to increase at a CAGR of 2% until the end of 2022.

    • The automotive industry is expected to increase its demand for urea, particularly technical grade urea, because of the increase in adblue consumption in the industry.

    •  Other uses of urea is to produce melamine and ammonia.

    Industry Best Practices: Pricing Dynamics

    • While energy costs for the ammonia swing, producers set a price floor for ammonia
    • The ammonia price sets a price for urea
    • If the urea price drops below this floor, more ammonia will be offered for sale, less urea will be sold, and the relationship will be restored
    • China is responsible for setting the floor prices of urea sometimes. Otherwise, in the international markets, ammonium prices are referred to in order to determine the price of urea.
    • The urea price forecast depends on various factors.
    • In a tight supply–demand scenario for nitrogen, where there is a demand-driven urea margin, the correlation is low. Such a scenario is often witnessed during the period with strong prices for agricultural soft commodities

    Global Market Size: Urea

    • Urea fertilizer prices are looking to firm up after years of weakness. This is resulting from signs of global tightening, resulting from strong Indian imports combined with low export availability out of China. Exports from China are dwindling because of low global prices and very high cost of production, owing to the huge increase in bituminous coal prices in China
    • Although capacity had increased in the US, it may not cover the export volume, which will be lost from China. These factors are expected to drive urea prices upward, which will eventually enable the urea market to breach $65 billion mark by 2020
    • Key drivers for growth in urea's market size will be strategic alliances and acquisitions between global leaders, which will determine the future growth of the urea market through consolidation; however, growth in urea will be offset by other N-fertilizer types, like nitrate, which is more environmental friendly. For instance, in Europe, demand for urea is paling, owing to its impact on the environment (long carbon footprint life cycle), and there are alternatives to urea, which have significantly lower impact than urea-based products

    Global Supply–Demand Analysis

    • During the last one and half decade, China added capacity at a rapid pace that totally out paced the global demand. Currently, the trend is getting reversed with other regions adding more capacity and China idling its capacity, due to stringent environmental norms and higher production cost. This is expected to bring some balance in global supply – demand

    • China is one of the largest urea-formaldehyde resin producers in the world. As China’s demand will likely stay the same or increase, the demand for it is likely to increase too.

    • Urea represents half of the total nitrogen output and will contribute to two-thirds of the projected ammonia capacity increment over the next five years.The global urea capacity is projected to increase by 17 MT to 226 MT in 2021. On a regional basis, Africa, North America, and EECA will account for 70 percent of the overall capacity growth

    Supply and demand outlook: 

    • Global urea supply is estimated to be at 190 MT in 2022, growing at 2 percent annually over 2017–2022
    • Developing nation to push the demand: Sustained annual growth of urea demand, owing to rise in consumption from LATAM and South Asian markets

    • Asia-Pacific market will continue to rule when it comes to urea demand and supply in the coming years. As it is the largest market size at present, experts predict that this trend will continue because of an increase in consumption and production in that region.
       

    Urea Market Overview

    • In 2017, fertilizer applications accounted for an estimated 82 percent of global urea consumption. 
    • According to experts the technical-grade urea can witness an increase in growth by year 2024. The applications of technical grade urea include medical drugs, cosmetics, dyes, disinfectants, and glue.
    • The top 10 urea exporting countries account for more than 40 percent of the global trade, with China emerging as the largest supplier. The industry is extremely fragmented, with close to 300 prominent suppliers globally
    • The top 12–13 players account for only 20 percent of the global market, in terms of volume. Most of the urea suppliers (major) are vertically integrated.
    • Suppliers in the Middle East, like QAFCO, are major exporters, as there is no domestic demand in their region
    • Urea cost structure analysis shows that while energy costs for the ammonium-swing producers set a price floor for ammonia, the ammonia price sets a floor for the urea price. If the urea price drops below this floor, more ammonia will be offered for sale, less urea will be sold, and the relationship will be restored
    • The major opportunity for the urea market is the emergence of new markets. As the industrial sector is using urea more and more, there is likely to be an increase in its demand according to the urea market outlook analysis. For example, urea is used to make urea formaldehyde resins, diesel exhaust fluids, animal feed, and melamine.
       

    Why You Should Buy This Report

    • The report contains urea cost structure breakdown and urea price forecast. 
    • It gives the market outlook, supply-demand trend analysis and trade dynamics of the regional and global urea market. 
    • The report does the Porter’s five force analysis of the North American, Asian and European urea market.
    • It lists the various industry drivers and constraints.
    • The report gives an exhaustive supplier list and does the SWOT analysis of key suppliers like SABIC, Sinofert Holdings, etc.