Urea 46% Complete Guide: International Trade & Specifications

Urea 46% is the world's most widely traded nitrogen fertilizer, accounting for over 50% of global nitrogen fertilizer consumption. This comprehensive guide covers everything you need to know about international Urea 46% trading.

What is Urea 46%?

Urea 46% (chemical formula: CO(NH₂)₂) is a white crystalline solid containing 46% nitrogen by weight. It's produced synthetically from ammonia and carbon dioxide through the Bosch-Meiser process. The "46%" refers to the minimum nitrogen content, making it the most concentrated solid nitrogen fertilizer available.

Chemical and Physical Properties

Chemical Formula: CO(NH₂)₂

Nitrogen Content: 46% minimum (46-0-0 NPK ratio)

Appearance: White to off-white crystals

Moisture Content: 0.5% maximum

Biuret Content: 1.0% maximum (critical for foliar application)

Purity: 99.5% minimum

Solubility: Highly soluble in water (1080 g/L at 20°C)

Granular vs Prilled Urea: Key Differences

Granular Urea

Produced through a granulation process, resulting in larger, more uniform particles (2-4mm diameter).

Advantages:

Less dusty during handling and transportation

Better for mechanical spreaders

Reduced caking in storage

Ideal for bulk blending operations

Lower volatilization losses

Best For: Large-scale agricultural operations, bulk blending facilities, mechanical spreading

Prilled Urea

Formed by prilling (spraying molten urea into a cooling tower), creating smaller spherical particles (1-2mm diameter).

Advantages:

Faster dissolution in soil

More uniform particle size distribution

Cost-effective production process

Widely available globally

Suitable for direct application

Best For: Small to medium farms, direct soil application, fertigation systems

Global Urea 46% Market Overview

Major Producing Regions

Middle East (40% of global exports)

- Saudi Arabia, UAE, Qatar, Iran

- Competitive pricing due to low natural gas costs

- FOB Persian Gulf (AG) pricing benchmark

China (25% of global production)

- World's largest producer and consumer

- Export volumes fluctuate based on domestic demand

- Government export policies impact global supply

Russia & Eastern Europe (15% of exports)

- Low-cost production

- Exports mainly to Europe, Turkey, Latin America

North Africa (10% of exports)

- Egypt, Algeria

- Strategic location for European and African markets

Major Importing Regions

India - World's largest importer (8-9 million MT annually)

Brazil - Second largest importer (6-7 million MT annually)

United States - 3-4 million MT annually

Southeast Asia - Thailand, Vietnam, Indonesia (combined 4-5 million MT)

Europe - France, Germany, Poland (combined 3-4 million MT)

Pricing Factors and Market Dynamics

Urea 46% prices are influenced by multiple interconnected factors:

1. Natural Gas Prices

Natural gas accounts for 70-80% of urea production costs. Price fluctuations in gas markets directly impact urea pricing.

2. Energy Costs

Electricity and coal prices (especially in China) affect production economics.

3. Seasonal Demand Patterns

Peak Season (March-May, September-November): Planting seasons drive prices up

Off-Season (June-August, December-February): Lower demand creates buying opportunities

4. Global Supply-Demand Balance

Production capacity additions, plant shutdowns, and export restrictions create price volatility.

5. Freight Rates

Shipping costs from origin to destination can add $30-80/MT depending on route and vessel availability.

6. Currency Exchange Rates

USD strength impacts purchasing power for importing countries.

7. Government Policies

China export restrictions

India import duties and subsidies

Environmental regulations

International Trade Procedures for Urea 46%

Step 1: Initial Inquiry and ICPO Submission

Buyer submits Irrevocable Corporate Purchase Order (ICPO) with:

Company details and registration documents

Required quantity and specifications

Delivery terms (FOB, CFR, or CIF)

Target price or price range

Delivery timeline

Step 2: NCNDA/IMFPA Signing

Non-Circumvention, Non-Disclosure Agreement and International Master Fee Protection Agreement protect all parties' interests.

Timeline: 1-2 business days

Step 3: Sales & Purchase Agreement (SPA)

Detailed contract negotiation covering:

Product specifications (refer to international standards)

Quantity and tolerance (typically ±5%)

Price and payment terms

Delivery schedule

Loading port and discharge port

Inspection procedures (SGS or equivalent)

Force majeure clauses

Dispute resolution mechanism

Timeline: 3-5 business days

Step 4: Proof of Product (POP)

Seller provides evidence of product availability:

Product passport

SGS inspection report from previous shipments

Tank storage receipt or warehouse documents

Fresh SGS report (for current stock)

Timeline: 3-7 business days

Step 5: Payment Instrument Activation

Buyer's bank issues SBLC (Standby Letter of Credit) or DLC (Documentary Letter of Credit):

Confirmed by seller's bank

Irrevocable and transferable

Valid for entire contract period

Covers commodity value plus agreed margins

Timeline: 5-10 business days

Step 6: Loading and SGS Inspection

Product loaded at origin port

SGS conducts quantity and quality inspection

Certificate of Quality (COQ) and Certificate of Quantity issued

Bill of Lading (B/L) prepared

Timeline: 2-3 days

Step 7: Shipment and Delivery

Vessel departs for destination port

Shipping documents sent to buyer's bank

Title transfer upon payment or as per agreement

Timeline: 15-45 days depending on shipping route

Step 8: Discharge and Final Inspection

SGS inspection at destination (if agreed)

Quality and quantity verification

Any claims must be filed within agreed timeframe (typically 7 days)

Quality Assurance and International Standards

SGS Inspection Parameters

Société Générale de Surveillance (SGS) inspection verifies:

Nitrogen Content: Minimum 46.0% by weight

Moisture: Maximum 0.5%

Biuret: Maximum 1.0% (critical for plant safety)

Size Distribution: 90% within specified range (granular: 2-4mm, prilled: 1-2mm)

Crushing Strength: Minimum values per specification

Free Ammonia: Maximum 200 ppm

Formaldehyde: Maximum 100 ppm

Color: White to off-white

International Standards

ISO 8157: Fertilizers and soil conditioners - Vocabulary

ISO 5315: Determination of total nitrogen content

FAO Specifications: Guidelines for fertilizer quality

Packaging and Labeling Requirements

Bulk: Shipped in vessels (12,500 MT+ typical lot size)

Bagged: 50kg polypropylene bags with PE liner

Labeling: Must include nitrogen content, batch number, production date, manufacturer details, hazard warnings

Applications of Urea 46%

1. Agricultural Fertilizer (90% of global consumption)

Direct Soil Application: Broadcast before or during planting

Top Dressing: Applied to growing crops

Fertigation: Dissolved in irrigation water

Foliar Spray: Diluted solution (low-biuret grade required)

Suitable Crops:

Cereals: Wheat, rice, corn, barley

Oilseeds: Soybean, canola, sunflower

Fruits: Citrus, apples, grapes

Vegetables: Tomatoes, potatoes, lettuce

Cash Crops: Cotton, sugarcane, coffee

2. Industrial Applications (5% of consumption)

Melamine Production: Resin manufacturing

Urea-Formaldehyde Resins: Adhesives, plywood, particleboard

Animal Feed: Ruminant nutrition (non-protein nitrogen source)

Diesel Exhaust Fluid (DEF/AdBlue): Automotive grade urea (32.5% solution)

3. Chemical Industry (3% of consumption)

Barbiturates and pharmaceuticals

Cosmetics and skin care products

Flame retardants

4. Other Applications (2% of consumption)

De-icing agent for airports and roads

Flue gas treatment in power plants

Laboratory reagent

Storage and Handling Best Practices

Storage Requirements

Dry Environment: Relative humidity below 75%

Temperature: Store below 30°C to prevent caking

Covered Storage: Protect from rain and direct sunlight

Concrete Flooring: Prevent moisture absorption from ground

Stock Rotation: First-in, first-out (FIFO) principle

Separation: Keep away from incompatible materials

Caking Prevention

Urea is hygroscopic and can cake in humid conditions:

Use anti-caking agents (0.03-0.05% coating)

Maintain proper storage conditions

Regular stock turnover (use within 6 months)

Safety Considerations

Toxicity: Low toxicity but avoid ingestion

Dust: Minimize dust exposure during handling

Spills: Clean with water, prevent environmental contamination

Fire: Not flammable but can intensify fires

Common Trading Terms Explained

Incoterms

FOB (Free On Board): Seller delivers goods on vessel at loading port; buyer pays freight and insurance

CFR (Cost and Freight): Seller pays freight to destination; buyer pays insurance

CIF (Cost, Insurance and Freight): Seller pays freight and insurance to destination

Payment Terms

SBLC: Standby Letter of Credit - backup payment mechanism

DLC: Documentary Letter of Credit - payment against documents

T/T: Telegraphic Transfer - wire payment (used for smaller transactions)

Quality and Quantity Tolerance

±5% tolerance: Standard for bulk commodity shipments

Final at Loading: Quantity determined at loading port

Final at Discharge: Quantity determined at destination port

Conclusion

Urea 46% remains the cornerstone of global nitrogen fertilizer trade, with annual trade volumes exceeding 60 million metric tons. Understanding product specifications, market dynamics, and international trade procedures is essential for successful participation in this market.

Whether you're a buyer seeking reliable supply or a seller looking for qualified customers, working with experienced commodity trading partners ensures smooth transactions, quality assurance, and competitive pricing.

Need assistance with Urea 46% procurement or sales? Contact Stratoma Interchange for expert guidance on international fertilizer trading.

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