If there is something that is in short supply at the moment, it is urea. In various parts of the world it is produced at an industrial level for different uses, such as Automotive fertilizer (of which we are direct importers) since it is the key ingredient of a product for diesel cars necessary to reduce polluting emissions.

The main raw material for obtaining this compound is gas, which is first converted into ammonia through a chemical process and then dehydrated to form urea.

Urea is one of the best-known fertilizers and its prices have skyrocketed this year, according to the World Bank. We understand that there are several factors that explain and detail this unprecedented price increase. 

First of all, it is driven by the high cost of energy that is spent on the production of this fertilizer. In addition, high fertilizer prices could put inflationary pressures on food prices, compounding concerns about food security at a time when the Covid-19 pandemic and climate change make access to food more difficult.

In turn, the World Bank states that the increase in the prices of thermal coal in China caused a cost in the use of electricity in some provinces and forced fertilizer factories to reduce their production.

For this reason, Russia and China, two of the main producers of fertilizers worldwide, imposed certain restrictions on the export of fertilizer products, which was seen as a measure to cool prices and guarantee domestic supply.

One of the places in the world where the increase in prices and scarcity of urea is being felt the most is India.

The Asian country is the main importer of urea, an essential product to feed its huge agricultural sector, which employs around 60% of the country's workforce and represents 15% of the economy.

At Chem Fluid we are importers of the highest quality Automotive Urea, enter and quote with us at chemfluid.com.co