Entering June, the global fertilizer trade experienced a period of change. The implementation of new domestic urea export policies, coupled with India's massive procurement tender, disrupted the export market. International sulfur prices surged, pushing up phosphate fertilizer production costs, while compound fertilizer prices continued to decline due to the off-season. Significant divergence in international fertilizer prices has become a key focus in the recent fertilizer export market.
Latest Price Dynamics of Major Fertilizer Varieties
Urea: Prices Under Pressure Across the Board
In late May 2026, the international urea market continued its downward trend. As of the week ending May 22, the mainstream FOB price of granular urea in the Middle East had fallen to $770-800/ton, compared to $800-830/ton FOB in the week ending May 29. Only non-mainstream sources, such as Iran, offered prices as low as $610/ton. Affected by increased local shipments and weak spot market demand, prices continued to decline. Prices weakened further from the Middle East FOB price of $820-840/ton in early May.
Malaysia's Petronas sold 6,000 tons of urea at $790/ton FOB, down $120/ton from Brunei's $910/ton price two weeks prior, indicating a continued correction in the regional market. At Batumi port in the Baltic Sea, Russian producers exported 10,000 tons of small granular urea to Latin America at $690/ton FOB.
Phosphate Fertilizer: Prices Stabilize at High Levels
International diammonium phosphate (DAP) prices remained around $785/ton FOB, up over 13% year-on-year. India recently secured 1.347 million tons of DAP at a CFR price of $930-935/ton, the highest level since July 2022, nearly 40% higher than in January.
Potash Fertilizer: Major Annual Contract with India Secured, Prices Significantly Increased
On May 18th, Belarusian potash company BPC and Indian potash company IPL reached a major contract for 2026 potash imports to India, priced at $383/ton CFR, an increase of $34/ton (+10%) compared to last year's Indian contract price. This contract price is $35 higher than the 2026 major contract price of $348 signed with China in November 2025, marking a record high price difference between the two countries.
Raw Material and Supply Chain Bottlenecks
Sulfur prices have surged from $150-180 per ton a year ago to $850-900, with landed prices in some regions even approaching $1000, significantly pushing up the production costs of phosphate fertilizers and ammonium sulfate. The June ammonia contract settlement price at the Port of Tampa, USA, was $775/ton CFR, a decrease of $50 from May, reflecting some improvement in supply west of the Suez Canal, but the supply-demand balance in the Eastern market remains tight due to the situation in Iran.
