Latin America and the Caribbean: Urea Market 2024

Urea Market Size in Latin America and the Caribbean

The Latin American urea market surged to $X in 2022, growing by 39% against the previous year. Over the period under review, consumption enjoyed a buoyant expansion. The level of consumption peaked in 2022 and is expected to retain growth in the immediate term.

Urea Production in Latin America and the Caribbean

In value terms, urea production dropped to $X in 2022 estimated in export price. In general, production continues to indicate a slight slump. The pace of growth appeared the most rapid in 2021 when the production volume increased by 39%. The level of production peaked at $X in 2012; however, from 2013 to 2022, production failed to regain momentum.

Urea Exports

Exports in Latin America and the Caribbean

In 2022, shipments abroad of urea increased by 27% to X tons, rising for the second year in a row after four years of decline. Overall, exports, however, showed a noticeable shrinkage. The volume of export peaked at X tons in 2012; however, from 2013 to 2022, the exports stood at a somewhat lower figure.

In value terms, urea exports surged to $X in 2022. Over the period under review, exports, however, showed a slight downturn. The pace of growth appeared the most rapid in 2021 when exports increased by 60%. The level of export peaked at $X in 2012; however, from 2013 to 2022, the exports stood at a somewhat lower figure.

Exports by Country

Trinidad and Tobago was the main exporting country with an export of around X tons, which accounted for 47% of total exports. Bolivia (X tons) held the second position in the ranking, followed by Venezuela (X tons) and Brazil (X tons). All these countries together held near 47% share of total exports. The following exporters - Turks and Caicos Islands (X tons) and Honduras (X tons) - each recorded a 3.9% share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by Honduras (with a CAGR of +28.0%), while the other leaders experienced more modest paces of growth.

In value terms, the largest urea supplying countries in Latin America and the Caribbean were Trinidad and Tobago ($X), Bolivia ($X) and Venezuela ($X), with a combined 86% share of total exports. Brazil, Turks and Caicos Islands and Honduras lagged somewhat behind, together comprising a further 12%.

In terms of the main exporting countries, Honduras, with a CAGR of +23.4%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the export price in Latin America and the Caribbean amounted to $X per ton, surging by 14% against the previous year. Export price indicated a tangible expansion from 2012 to 2022: its price increased at an average annual rate of +3.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, urea export price increased by +111.1% against 2016 indices. The growth pace was the most rapid in 2021 when the export price increased by 57%. The level of export peaked in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Turks and Caicos Islands ($X per ton), while Honduras ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Bolivia (+8.4%), while the other leaders experienced more modest paces of growth.

Urea Imports

Imports in Latin America and the Caribbean

In 2022, overseas purchases of urea increased by 32% to X tons, rising for the third consecutive year after two years of decline. Total imports indicated a prominent expansion from 2012 to 2022: its volume increased at an average annual rate of +6.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +79.5% against 2019 indices. The most prominent rate of growth was recorded in 2021 when imports increased by 32% against the previous year. Over the period under review, imports reached the peak figure in 2022 and are likely to see steady growth in years to come.

In value terms, urea imports skyrocketed to $X in 2022. Over the period under review, imports continue to indicate a resilient increase. The most prominent rate of growth was recorded in 2021 with an increase of 105% against the previous year. The level of import peaked in 2022 and is expected to retain growth in years to come.

Imports by Country

In 2022, Brazil (X tons) was the major importer of urea, making up 57% of total imports. Mexico (X tons) took the second position in the ranking, followed by Argentina (X tons) and Chile (X tons). All these countries together held near 27% share of total imports. Colombia (X tons), Uruguay (X tons) and Peru (X tons) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to urea imports into Brazil stood at +11.5%. At the same time, Argentina (+21.0%), Uruguay (+3.4%), Chile (+2.7%), Mexico (+1.4%) and Colombia (+1.2%) displayed positive paces of growth. Moreover, Argentina emerged as the fastest-growing importer imported in Latin America and the Caribbean, with a CAGR of +21.0% from 2012-2022. By contrast, Peru (-4.5%) illustrated a downward trend over the same period. Brazil (+21 p.p.) and Argentina (+6.8 p.p.) significantly strengthened its position in terms of the total imports, while Chile, Colombia, Peru and Mexico saw its share reduced by -2.2%, -2.6%, -4.9% and -8.1% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) constitutes the largest market for imported urea in Latin America and the Caribbean, comprising 63% of total imports. The second position in the ranking was taken by Argentina ($X), with a 9.5% share of total imports. It was followed by Mexico, with a 9.5% share.

From 2012 to 2022, the average annual growth rate of value in Brazil amounted to +17.1%. In the other countries, the average annual rates were as follows: Argentina (+24.0% per year) and Mexico (+1.3% per year).

Import Prices by Country

The import price in Latin America and the Caribbean stood at $X per ton in 2022, with an increase of 36% against the previous year. Overall, the import price continues to indicate a notable increase. The most prominent rate of growth was recorded in 2021 an increase of 55%. Over the period under review, import prices attained the peak figure in 2022 and is likely to continue growth in the near future.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Uruguay ($X per ton), while Peru ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+5.0%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

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