Material Insights · Understanding the Material World

Urea: Overview

Fertiliser, plywood glue and the AdBlue in diesel trucks

What this tab covers What the chemical is, how big its market is, what it is used for (with shares, volumes, why it wins and what could replace it), and its chain from raw material to end user. Ends with three things to remember.

Urea is a white solid made by reacting ammonia with carbon dioxide, usually at the same site as the ammonia plant. About 201 Mt was made in 2024 (IFA), and about 80-87% is used as fertiliser. It is the cheapest nitrogen to ship and spread because it is 46% nitrogen and moves as dry bulk. India uses about 40 Mt a year at a fixed farm price and imports the shortfall, so Indian tenders move world prices. The CO2 locked into urea is released once it is spread on fields, and soil N2O makes its field footprint larger than its factory footprint.

Volume about 201 Mt a year (2024) Market value about $70-85 billion a year (indicative, basis: 201 Mt x World Bank annual average of $338/t in 2024 and $423/t in 2025) Growth about 1-2% a year (indicative); India's sales rose from 38.77 Mt (FY2025) to 39.64 Mt (FY2026) IFA via DTN (Dec 2025); World Bank Pink Sheet annual prices; Chambal Fertilisers MD&A FY2026

Key uses

UseShareAnnual volumeWhy this commodityAlternatives
Nitrogen fertiliser (granular and prilled urea, blends, UAN solutions)87%about 175 Mtbasis At 46% N urea has the highest nitrogen content of any solid fertiliser, so it is cheapest per unit of N to ship, store and spread. It suits rice, wheat and maize across Asia, Brazil and the US. In India it is the most subsidised nutrient. Integer Research via Transport Topics (2012) industrial share; S&P Global Chemical Economics Handbook (2023) Ammonium nitrate and CAN
UAN
Ammonium sulphate
Nano urea (IFFCO liquid)
Legumes and manure
Urea-formaldehyde resins and melamine (wood panels, laminates, adhesives)10%about 20 Mtbasis UF resins are the cheapest binder for particleboard and MDF. Melamine, made from urea, goes into laminates, tableware and flame retardants. Integer Research via Transport Topics (2012) Phenol-formaldehyde and MDI binders
Soy-based adhesives
Diesel exhaust fluid (AdBlue, 32.5% urea solution)1%about 2 Mtbasis Selective catalytic reduction on diesel trucks and gensets sprays urea solution to turn NOx into nitrogen and water. Demand rises with emission rules such as Bharat Stage VI. Integer Research via Transport Topics (2012) Electrification of trucks
Livestock feed (non-protein nitrogen for ruminants)1%about 2 Mtbasis Rumen microbes turn urea into protein, so it replaces part of oilseed meal in cattle feed. Integer Research via Transport Topics (2012) Soybean and rapeseed meal
Other industrial (NOx control in power plants, chemicals, cosmetics, textiles)1%about 2 Mtbasis Urea is a safe source of ammonia for flue gas DeNOx and a cheap chemical intermediate. Integer Research via Transport Topics (2012) Aqueous ammonia
Shares use Integer Research's 2012 split (about 20 Mt industrial out of about 160 Mt; chemical industry 80% of industrial; feed, DEF and other a third each of the rest), applied to 201 Mt in 2024 (IFA). S&P Global (2023) puts fertiliser at 80-85%, so industrial uses have likely grown, especially DEF.

From raw material to user

  1. Ammonia plant 0.567 t of ammonia per t of urea (stoichiometry); ammonia comes from gas or coal.
  2. CO2 from the reformer 0.733 t of CO2 per t of urea, taken from the ammonia plant's own pure CO2 stream.
  3. Urea synthesis Ammonia and CO2 react at about 140-200 bar to ammonium carbamate, which dehydrates to urea (Stamicarbon, Saipem Snamprogetti, Toyo processes).
  4. Finishing Melt is prilled in towers (1-2.8 mm) or granulated (2-4 mm); Indian urea is neem coated.
  5. Bulk shipping Moves as dry bulk; about 40% of seaborne urea passes Hormuz (Kpler via farmdoc daily, 2026); other estimates range from a third (Reuters) to 45% (Bloomberg Intelligence).
  6. Distribution and application Indian farmers pay Rs 242 per 45 kg bag (about Rs 5,380/t); the government pays the rest as subsidy.

Made from (commodity table)

Gas Natural gasN Nitrogen (ammonia)

Three things to know

  • World Bank urea rose from $415/t in January 2026 to $857/t in April 2026, then fell back to $407.5/t by September.
  • India made 29.32 Mt of urea in FY2026 but sold 39.64 Mt, so it imported 10.38 Mt.
  • Each tonne of urea carries 0.733 t of CO2 that is released in the field, on top of soil N2O.

Read the tabs

Production routeProductionFeedstocksCyclesTradingMovementRegulationCharacteristicsEmissions