According to assessment data released by research institute DTN, within just five days from June 8 to June 12, 202X, the average price in the international urea market sharply dropped by 12%, equivalent to a direct decrease of $100 per ton.

The rapid decline in urea prices this round closely aligns with the market’s growing expectations for the reopening of the Strait of Hormuz. As one of the world’s most important shipping routes, the arrangement for the Strait of Hormuz is a core element in the negotiations between the US and Iran to end the current conflict. The Middle East itself is one of the world’s main urea production regions. Urea, a widely used synthetic nitrogen fertilizer in agricultural production, is highly dependent on the smoothness of shipping in the Middle East for its supply and price stability.