The Urea Price Trend in Q3 2026 showed a significant change in the global fertilizer market, with prices falling sharply during the quarter before showing signs of recovery in September. Urea is an important fertilizer used by farmers around the world to improve crop growth and support agricultural production. 

It is also widely used in industrial and automotive applications, making its market important for several industries. During Q3 2026, the global market experienced different price movements depending on product grade, production costs, regional supply, and international demand. 

Granular fertilizer-grade Urea recorded major quarterly declines in several exporting countries, including China, Indonesia, Malaysia, Oman, Qatar, Russia, and the UAE. However, September brought a moderate recovery in many Middle Eastern markets. 

At the same time, technical-grade and automotive-grade Urea in China remained comparatively strong. These different movements made the Urea Prices market particularly interesting during the quarter.

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Global Urea Market Overview in Q3 2026

The global Urea market experienced a clear price correction in Q3 2026. Many fertilizer-grade suppliers faced lower international price levels as buyers adjusted their purchasing decisions and compared offers from different exporting countries.

China, Indonesia, and Malaysia recorded quarterly price declines of around 43% for granular fertilizer-grade Urea. Middle Eastern suppliers, including Oman, Qatar, and the UAE, experienced declines of approximately 41%. Russia also recorded a significant quarterly reduction of 37%.

India's imported fertilizer-grade Urea market followed a similar downward direction. Imported granular Urea from Oman recorded a quarterly decline of 47%, while Indian domestic technical-grade and automotive-grade markets also experienced considerable reductions.

However, the market did not remain weak throughout September. Several major exporting countries recorded increases in their export quotations. Saudi Arabia, Oman, Qatar, and the UAE experienced stronger prices as international replacement costs increased and suppliers offered firmer quotations.

This situation shows that the Urea market was not moving in one direction. Fertilizer-grade products faced significant quarterly pressure, while specialised industrial grades continued to receive support from their respective end-use industries.

China Urea Price Trend: Fertilizer Grade Market Faces a Major Correction

China remained an important part of the international Urea market during Q3 2026. The country recorded a quarterly price decline of 43% for granular fertilizer-grade Urea on an FOB Shanghai basis.

The decline reflected competitive export offers and changing international purchasing interest. Buyers had more opportunities to compare prices from different suppliers, which influenced export quotations.

Production costs also remained an important consideration. Coal and Natural Gas prices affected manufacturing economics and influenced the decisions of producers. When production costs change, manufacturers generally review their selling prices to protect their margins.

Agricultural demand and export availability also played an important role. Suppliers needed to consider domestic requirements as well as international demand when deciding how much material to offer overseas buyers.

Another important factor was international shipping uncertainty. Geopolitical tensions involving the USA, Israel, and Iran, together with disruptions around the Strait of Hormuz, created concerns about freight expenses, insurance, and shipment schedules.

Despite the major quarterly decline, China's granular fertilizer-grade Urea prices increased by 1.5% in September 2026. This small increase suggested that the market was beginning to stabilise after a period of substantial weakness.

China's Technical Grade Urea Market Remains Strong

Unlike granular fertilizer-grade Urea, China's Technical Grade Urea (TGU) market performed comparatively well during Q3 2026.

Technical Grade Urea recorded a quarterly price increase of 13% on an FOB Qingdao basis. This increase reflected demand from industrial users and downstream chemical applications.

Technical-grade products are used for purposes that require specific quality and purity characteristics. Therefore, their prices do not always follow the same direction as ordinary agricultural fertilizer products.

Product availability, production expenses, and procurement requirements influenced supplier quotations during the quarter. Competition among domestic manufacturers also affected market conditions.

In September 2026, Chinese Technical Grade Urea prices remained unchanged. This indicated that the market had maintained its stronger quarterly position without experiencing another major price movement.

The difference between fertilizer-grade and technical-grade Urea highlights an important point: product specifications and end-use demand can have a significant influence on market prices.

Automotive Grade Urea in China Records a 24% Quarterly Increase

Automotive Grade Urea (AGU) was another strong segment in China during Q3 2026.

The market recorded a quarterly price increase of 24% on an FOB Qingdao basis. This performance was considerably stronger than the fertilizer-grade market, which experienced a major decline.

Automotive Grade Urea is used in exhaust-treatment applications, where high-purity material is required. Demand from automotive applications and the availability of suitable-quality products influenced supplier quotations.

Production expenses, quality requirements, and procurement conditions also supported prices during the quarter.

China's automotive-grade export regulations remained relevant to international sourcing decisions, although their precise impact depended on the restrictions applicable during the assessment period.

In September 2026, Automotive Grade Urea Prices remained unchanged. This showed that the market maintained its quarterly gains and continued to perform differently from the agricultural fertilizer segment.

India Urea Price Trend: Imported and Domestic Markets Show Different Movements

India remained an important market for Urea because of its agricultural requirements and industrial consumption.

During Q3 2026, India's Urea market showed different price movements depending on product grade and supply origin.

Imported Technical Grade Urea from China recorded a quarterly increase of 6% on a CIF Nhava Sheva basis. The increase reflected comparatively firm landed costs for specialised industrial material.

Import prices were influenced by Chinese export quotations, product availability, freight expenses, and demand from Indian industrial consumers.

In September 2026, Indian imported Technical Grade Urea prices decreased slightly by 0.1%. This indicated broadly stable market conditions.

However, the domestic technical-grade market followed a different direction. Technical Grade Urea traded on an Ex-Vadodara basis recorded a quarterly decline of 32%.

Domestic supplier competition, inventory availability, and changes in industrial purchasing activity contributed to this reduction.

Production costs and feedstock availability also influenced manufacturers' selling decisions. Imported material provided an alternative source for some buyers, adding further competition to the domestic market.

In September, domestic Technical Grade Urea prices decreased by another 1.4%, indicating continued softness.

India Imported Fertilizer Grade Urea: Prices Recover in September

One of the most significant movements in India's fertilizer-grade market was recorded for imported Urea from Oman.

During Q3 2026, granular fertilizer-grade Urea imported from Oman recorded a quarterly decline of 47% on a CIF Kandla basis.

This was one of the largest declines among the assessed markets.

Lower international fertilizer prices and competitive export offers influenced Indian purchasing activity. Export quotations from Sohar in Oman directly affected the landed cost of imported material.

Freight, insurance, and shipment availability also played an important role in determining final import costs.

Geopolitical tensions and disruptions around the Strait of Hormuz increased uncertainty for buyers and suppliers. These developments created additional concerns regarding transportation expenses and shipment schedules.

However, September brought a positive change. Indian imported Urea prices increased by 6.4%, reflecting firmer replacement costs and stronger Omani export quotations.

This recovery suggested that international buyers were beginning to face higher replacement costs after the earlier quarterly correction.

India's Automotive Grade Urea Market Remains Under Pressure

India's domestic Automotive Grade Urea market also experienced a significant decline during Q3 2026.

Prices on an Ex-Vadodara basis decreased by 29% during the quarter.

The market was influenced by competition among domestic suppliers, inventory availability, and changing procurement requirements from automotive exhaust-treatment and industrial applications.

High-purity product availability remained important because automotive applications require material that meets specific quality standards.

Imported Automotive Grade Urea from China offered another supply option for Indian buyers. However, imported landed prices and domestic selling prices did not necessarily follow the same movement.

In September 2026, domestic Automotive Grade Urea prices decreased by a further 1.3%.

This indicated that the domestic market continued to face downward pressure, even as some international markets started showing signs of recovery.

Indonesia and Malaysia Urea Price Trends: Significant Quarterly Declines

Indonesia and Malaysia experienced similar movements in their granular fertilizer-grade Urea markets during Q3 2026.

In Indonesia, Urea prices on an FOB Tanjung Perak basis decreased by 43% during the quarter.

The decline reflected weaker international fertilizer prices, competitive regional supply, and changes in purchasing activity.

Coal and Natural Gas costs influenced production economics, while domestic agricultural requirements affected the balance between local consumption and export availability.

In September 2026, Indonesian Urea prices increased slightly by 0.1%. This suggested broadly stable export conditions after the significant quarterly decline.

Malaysia recorded an identical quarterly decrease of 43% for granular fertilizer-grade Urea on an FOB Port Kelang basis.

Competitive regional offers and lower international purchasing interest contributed to the decline.

Production expenses and agricultural procurement across Southeast Asia also influenced supplier decisions.

Unlike Indonesia, Malaysia experienced a further September decline of 0.7%.

These movements showed that although both countries experienced similar quarterly corrections, their markets followed slightly different directions toward the end of the quarter.

Middle East Urea Price Trend: September Recovery Across Major Exporting Countries

The Middle East remained an important supply region for the global Urea market during Q3 2026.

Oman, Qatar, Saudi Arabia, and the UAE experienced significant quarterly declines or market corrections, followed by stronger export quotations in September.

Oman recorded a quarterly decrease of 41% for granular fertilizer-grade Urea on an FOB Sohar basis. However, September prices increased by 6.8%.

The recovery reflected firmer export offers and improved international buying interest. Natural Gas costs, supplier competition, and shipping availability continued to influence pricing decisions.

Qatar also recorded a quarterly decline of 41% on an FOB Mesaieed basis. In September, prices increased by 5.9%.

The market was influenced by production economics, Natural Gas availability, and demand from major fertilizer-importing countries. Competition among Middle Eastern suppliers also played an important role.

Saudi Arabia showed a positive September movement, with granular fertilizer-grade Urea prices increasing by 7.8% on an FOB Yanbu basis.

The available assessment did not specify the quarterly percentage change for Saudi Arabia, so a precise quarterly comparison cannot be made.

Nevertheless, the September increase reflected firmer export quotations and changing international replacement costs.

The UAE recorded a quarterly decline of 41% for granular fertilizer-grade Urea on an FOB Ruwais Port basis. In September, prices recovered by 6.7%.

The increase indicated improved market sentiment and stronger export quotations.

Overall, the September recovery across these Middle Eastern markets showed that the earlier decline was not continuing at the same pace.

Russia Urea Price Trend: September Gains Follow Quarterly Decline

Russia also experienced a significant correction in granular fertilizer-grade Urea prices during Q3 2026.

On an FOB Ust-Luga basis, prices decreased by 37% during the quarter.

The decline reflected weaker international fertilizer prices and changing procurement conditions.

Natural Gas availability and production expenses remained important factors for Russian manufacturers. Export demand, supplier competition, and shipment costs also influenced international quotations.

Buyers continued to compare available supply from different exporting countries, which affected purchasing decisions.

In September 2026, Russian Urea prices increased by 3.8%.

This improvement suggested firmer export offers and a partial recovery in international market sentiment.

Although the September increase was not enough to reverse the entire quarterly decline, it indicated that the market was becoming more stable.

Major Factors Affecting Global Urea Prices in Q3 2026

Several important factors influenced the Urea Price Trend during the third quarter of 2026.

1. Natural Gas and Coal Costs

Natural Gas is an important input for Urea production, while coal is also used in manufacturing in certain producing regions.

Changes in these energy costs affect production expenses and manufacturers' selling decisions. When input costs increase, producers may face pressure to raise quotations. When production costs become more favourable, competition can increase.

2. Agricultural Demand

Agriculture remains one of the largest consumption areas for Urea.

Farmers' purchasing decisions, seasonal requirements, and fertilizer availability influence demand. When agricultural buyers delay purchases or reduce procurement, suppliers may face pressure to offer more competitive prices.

3. International Supply and Export Competition

The availability of material from China, the Middle East, Russia, and Southeast Asia influences international market conditions.

When several suppliers offer material at competitive prices, buyers have more options. This can create downward pressure on export quotations.

4. Freight and Shipping Costs

Transportation expenses are an important part of international Urea trade.

Freight rates, insurance premiums, and shipment schedules affect the final landed cost for importing countries.

Uncertainty around important shipping routes, including the Strait of Hormuz, added further concerns during Q3 2026.

5. Geopolitical Developments

Tensions involving the USA, Israel, and Iran influenced market sentiment and increased uncertainty around regional logistics.

Such developments can affect shipping calculations, insurance costs, and replacement economics even when actual product availability remains unchanged.

6. Industrial and Automotive Demand

Technical Grade and Automotive Grade Urea have different consumption patterns from agricultural fertilizer-grade products.

Industrial chemical applications and automotive exhaust-treatment requirements supported stronger prices in China's specialised Urea markets during the quarter.

Urea Price Chart and Urea Price Index: Understanding Market Movements

The Urea Price Chart provides a useful way to understand how prices change across countries, product grades, and trading locations.

During Q3 2026, a comparison of granular fertilizer-grade Urea prices showed a broad downward movement across several major exporting countries.

China, Indonesia, and Malaysia recorded quarterly declines of 43%, while Oman, Qatar, and the UAE recorded declines of approximately 41%. Russia experienced a smaller but still significant reduction of 37%.

India's imported granular fertilizer-grade Urea from Oman recorded the largest specified quarterly decline at 47%.

However, the chart would look different when technical-grade and automotive-grade products are included. China's Technical Grade Urea increased by 13%, while Automotive Grade Urea increased by 24%.

These differences demonstrate why product-specific price comparisons are important.

The Urea Price Index is another useful tool for understanding the general direction of the market. It helps buyers, sellers, manufacturers, and distributors follow price movements over time and compare changes across different market segments.

A price index can also help businesses understand whether market conditions are becoming stronger or weaker. However, comparisons should always consider product grade, delivery terms, origin, and destination.

For example, FOB export prices cannot be directly compared with CIF import prices without considering freight and insurance expenses.

Urea Price Forecast: What Could Influence the Market Ahead?

Looking beyond Q3 2026, the future direction of Urea prices will depend on several important market factors.

The September recovery in Middle Eastern export markets suggests that international fertilizer prices may have started finding some support after the earlier correction. However, this does not necessarily mean that prices will continue increasing in every region.

Agricultural demand will remain an important factor. Stronger fertilizer purchasing activity can support suppliers' quotations, while weaker demand may create additional competition.

Natural Gas and coal prices will also influence production economics. Changes in energy costs could affect manufacturers' willingness to offer material at lower prices.

International supply availability will remain equally important. Competitive export offers from China, the Middle East, Russia, and Southeast Asia could influence the direction of global prices.

Shipping conditions will also need attention. Any increase in freight costs, insurance premiums, or transportation uncertainty could raise replacement costs for importing countries.

Another important consideration will be the performance of specialised grades. Technical Grade and Automotive Grade Urea may continue to follow different pricing patterns because their demand depends on industrial and automotive applications rather than agricultural consumption alone.

👉 👉 👉 Please submit your query to get Urea price trend, forecast, and market price analysis: https://www.price-watch.ai/book-a-demo/ 

Therefore, the future Urea Price Trend is likely to depend on the balance between supply, demand, energy costs, and international trade conditions. Buyers should monitor regional quotations and landed costs rather than relying only on one global price movement.

The global Urea Price Trend in Q3 2026 reflected a major correction in granular fertilizer-grade prices, followed by a moderate recovery in several exporting regions during September. 

China, Indonesia, and Malaysia recorded quarterly declines of 43%, while Oman, Qatar, and the UAE experienced declines of around 41%. Russia recorded a quarterly decrease of 37%, and Indian imported granular fertilizer-grade Urea from Oman declined by 47%.

Despite these reductions, September brought stronger export quotations across several Middle Eastern markets. Saudi Arabia recorded a 7.8% increase, Oman increased by 6.8%, the UAE rose by 6.7%, and Qatar recorded a 5.9% increase. Russia also experienced a 3.8% recovery.

At the same time, China's Technical Grade and Automotive Grade Urea markets remained comparatively strong, recording quarterly increases of 13% and 24%, respectively.

These developments show that the Urea market is influenced by more than agricultural demand alone. Production costs, energy prices, industrial consumption, supplier competition, international logistics, and geopolitical developments all contribute to price movements.

Going forward, monitoring the Urea Prices, Urea Price Chart, and Urea Price Index will remain important for understanding market direction. A careful comparison of regional prices, product grades, and international replacement costs can help market participants make better purchasing and planning decisions.

Overall, Q3 2026 was a period of significant price adjustment followed by early signs of recovery, making regional supply conditions and demand trends particularly important for understanding the next phase of the global Urea market.

About Price Watch™ 

Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watch™ transforms market volatility into actionable opportunity. 

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