The global urea market is projected to grow at a CAGR of 3.8% between 2020 and 2027. The primary driver of this growth is the increasing demand for urea in agriculture, particularly in developing countries. Additionally, the growth of the biofuels industry and the increasing use of urea in the automotive industry are also driving the growth of the urea business market.
UREA BUSINESS AND TREND
There is expected growth in worldwide urea production capacity. China plans to increase its annual production capacity by 2.4 million tons this year, while India will also have 1-2 sets of 1.27 million ton units put into operation. As a result, urea exports may decrease.
The international supply of urea has increased, and energy prices have declined, leading to a decrease in India's demand for imports. This will likely result in a significant decrease in export volume by 2023. The international urea price has also declined due to the end of the energy crisis.
Furthermore, the global economy is expected to fall into recession, leading to a decline in oil and gas prices and the international urea cost. India's urea plant has also been put into operation, reducing its need for imports. The center of coal prices is slowly moving downwards.
Despite occasional environmental protection and maintenance measures that prompt companies to reduce production, China's urea industry tends to maintain high operating rates due to high profits.
During the peak season of agricultural demand, terminal inventory is low, while industrial demand has slightly rebounded. Research has confirmed that demand during the peak season remains strong and can absorb the high production brought about by high operating rates.
In conclusion, the urea business market is a growing and lucrative industry, particularly in China, Europe, and America. With the increasing demand for food and the growth of the biofuels and automotive industries, the demand for urea is expected to increase further in the coming years.
