Urea prices in the United States increased by 1% in the early week of February 2026, continuing the upward momentum seen in January. During January 2026, prices rose by 3.2% month-on-month, supported by improving fertilizer demand, supply concerns, and seasonal agricultural buying ahead of spring planting.
The domestic urea market entered 2026 on a firmer footing. While production and export activity appeared healthier compared to last year, pricing strength was largely driven by fear of potential disruptions rather than confirmed supply shortages. Market sentiment turned bullish as buyers moved to secure volumes early.
Demand from downstream fertilizer producers improved steadily through January. As spring plowing approaches, agricultural activity is entering its peak season, pushing nitrogen based products demand higher. Fertilizer manufacturers stepped up procurement of granular urea, while distributors increased restocking activity to prepare for stronger field application demand.
Although domestic urea supply remained ample, downstream demand strengthened enough to absorb available volumes. New orders increased across key agricultural regions, and urea manufacturers reported smooth sales flows. Producers and distributors maintained firm offers, reflecting improved bargaining power in the market.
Geopolitical risks also contributed to upward pressure. Concerns surrounding Iran’s export role and broader global tensions sustained a risk premium in international urea markets. Even U.S. buyers not directly sourcing from Iran remained cautious, fearing potential global supply tightening.
At the same time, Russia’s urea exports and higher shipments from China indicated better global supply availability compared to last year. However, despite improved international flows, U.S. manufacturers and distributors continued to hold pricing power due to steady domestic demand and disciplined selling behavior.
Weather-related disruptions also affected parts of the supply chain. Adverse conditions temporarily impacted logistics and operations for several chemical suppliers, tightening prompt availability in certain regions. These disruptions added to concerns about short-term supply reliability.
Throughout January 2026, urea prices showed a consistent upward pattern rather than sharp volatility. Early January trading was balanced, but mid-month saw stronger buying interest and tighter spot availability. By late January, more aggressive procurement ahead of peak planting season helped push prices higher on a monthly basis.
In early February, the 1% weekly increase reflected continued buying interest and steady absorption of prompt cargoes. While some nitrogen products showed mixed trends, urea stood out with firmer movement, largely driven by improving fertilizer demand and supply risk perceptions.
As per the Chemanalyst data, Urea prices are likely to increase further in the near term, supported by strengthening downstream fertilizer demand and seasonal agricultural activity. Ongoing geopolitical uncertainties and potential supply disruptions may continue to sustain a risk premium, keeping market sentiment firm in the coming weeks.
