How is urea pricing determined?
Urea is the most widely used fertilizer in the world, and increased international demand has caused urea pricing to increase. In fact, 2008 marked some of the highest urea prices ever recorded. However, many factors determine pricing. Up to 85 percent of the hard costs associated with urea production results from natural gas, so the fluctuating price of natural gas will affect the price of urea. In addition, increased transportation costs to move urea from one location to another will affect the bottom line. Perhaps most important, supply and demand weighs heavily on the cost of urea. What countries supply the market? Representing more than 60 percent of the world’s production, Asia remains the top urea producer. Other notable producers include the United States, Middle East, Eastern Europe and Central Asia. What countries are the biggest importers? With each hovering at about 20 percent, South Asia, Latin America and the United States are the world’s largest urea importers. In terms o
