In the second half of this year, urea was heavily affected by high demand in India. This country, which is the largest importer of urea in the world, has shifted the record of the most demands last year.
In the second half of this year, urea was heavily affected by high demand in India. This country, which is the largest importer of urea in the world, has shifted the record of the most demands last year. The country's total imports from April 2019 to March 2020 amounted to 9.1 million tons, while from April 2020 until today, which is 3 months less than the same period, it has exceeded to 9 million tons. The total urea traded in the world is 50 million tons which India play an important role in it.
Indian state-owned RCF Company bought 2.18 million tons of urea in October through an auction which shows the importance of urea.
The Indians buy urea shipments from the market which leads to higher prices elsewhere.
India's urea imports are estimated at 11 million tons and a total consumption of 36.2 million tons in 2020. The most important elements of high consumption are the development of agricultural activities and the high level of rainfall in this country.
It is not yet clear which country can replace India and drive the market forward if its demand in 2021 is not as high as it is this year.
Brazil also breaks the record of imports with 6.5 million tons of urea this year.
China is the largest producer of urea in the world and plays a very important role in the exporting urea.
The country's industrial and agricultural urea exports are already projected to fall from 5.3 million tons to 4 million next year due to rising domestic demand, which could largely offset the effect of India's declining demand.
Overall, global urea production capacity is expected to increase in 2021, which ensures that supply will be adequate next year.