Nitrogen (ammonia): Trading
From Middle East granules to Tampa ammonia benchmarks
What this tab covers How and where it is bought and sold: who buys and sells, exchanges and benchmarks, contract types, the big trading houses and how prices are discovered.Most ammonia and urea trade under negotiated contracts and spot cargoes. Price-reporting agencies such as Argus, CRU, Fastmarkets and Green Markets assess regional benchmarks. Examples are granular urea in the Middle East, Egypt, Brazil and the US Gulf, and Tampa ammonia. CME lists cash-settled urea and UAN contracts that settle against these assessments, though liquidity is modest. India buys much of its urea through large state-run import tenders, which often set the global tone. Morgan (pdf p. 444) recounts a 1974 kickback on Romanian urea sold to the US amid scarcity.
Where it is bought (buyers)
- India's state agencies (NFL, IPL, RCF) buy urea by public tender for delivery to Indian ports
- Brazil, the US and Australia import urea through distributors and co-operatives ahead of planting
- Morocco (OCP) and India buy ammonia to make DAP
- Chemical makers in Europe and Asia buy merchant ammonia under term contracts
Where it is sold (sellers)
- Gulf producers (Saudi Arabia, Qatar, Oman), Egypt, Algeria and Nigeria export granular urea
- Russia exports urea, ammonium nitrate and ammonia
- Trinidad and Tobago leads ammonia exports (21.4% of value in 2024)
- China exports urea in seasonal windows when the government allows it
Exchanges and benchmarks
| Venue | Contract | Notes |
|---|---|---|
| CME Group | Cash-settled urea (granular) swaps/futures for FOB US Gulf, FOB Middle East, FOB Egypt and CFR Brazil; UAN FOB NOLA | Settle against price-agency assessments; liquidity modest |
| No Indian exchange contract | Urea is price-controlled in India (Rs 242 per 45 kg bag, Lok Sabha, Dec 2024) | Farmers and dealers face fixed prices; the subsidy absorbs world price moves |
Contract types
- Government import tenders (India) with fixed-price offers by port
- Monthly Tampa ammonia contract price settled between major buyer and seller
- Term supply contracts with formula pricing off PRA benchmarks
- Spot cargoes priced FOB origin or CFR destination
Top trading houses
- Koch Fertilizer
- Ameropa
- Keytrade
- Dreymoor Fertilisers
- Trammo (ammonia)
- Helm
How prices are discovered
- Weekly price assessments by Argus, CRU, ICIS, Profercy and Green Markets
- Indian tender results, which reset Middle East and Egyptian prices
- World Bank Pink Sheet monthly urea series (Middle East)