Latvia: Urea Market 2024

Urea Market Size in Latvia

In 2022, the Latvian urea market decreased by -28.3% to $X, falling for the second year in a row after two years of growth. In general, consumption, however, posted a prominent expansion. Urea consumption peaked at $X in 2017; however, from 2018 to 2022, consumption stood at a somewhat lower figure.

Urea Exports

Exports from Latvia

In 2022, after seven years of growth, there was significant decline in overseas shipments of urea, when their volume decreased by -6.4% to X tons. In general, exports, however, saw a prominent increase. The most prominent rate of growth was recorded in 2015 with an increase of 144%. The exports peaked at X tons in 2021, and then dropped in the following year.

In value terms, urea exports rose sharply to $X in 2022. Over the period under review, exports, however, posted a significant increase. The growth pace was the most rapid in 2021 when exports increased by 142%. Over the period under review, the exports reached the peak figure in 2022 and are expected to retain growth in the near future.

Exports by Country

Sweden (X tons), the Czech Republic (X tons) and Bulgaria (X tons) were the main destinations of urea exports from Latvia, with a combined 34% share of total exports. Estonia, Spain, Lithuania, Poland, Italy, Slovenia, Malta, Norway, Austria and Portugal lagged somewhat behind, together comprising a further 54%.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Poland (with a CAGR of +90.7%), while the other leaders experienced more modest paces of growth.

In value terms, the largest markets for urea exported from Latvia were Poland ($X), Sweden ($X) and the Czech Republic ($X), with a combined 36% share of total exports.

Poland, with a CAGR of +134.1%, saw the highest growth rate of the value of exports, among the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average urea export price stood at $X per ton in 2022, rising by 13% against the previous year. Over the period under review, export price indicated a strong expansion from 2012 to 2022: its price increased at an average annual rate of +5.2% 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 +75.2% against 2020 indices. The most prominent rate of growth was recorded in 2021 an increase of 55% against the previous year. Over the period under review, the average export prices reached the peak figure in 2022 and is likely to see gradual growth in years to come.

There were significant differences in the average prices for the major overseas markets. In 2022, amid the top suppliers, the country with the highest price was Poland ($X per ton), while the average price for exports to Estonia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Poland (+22.7%), while the prices for the other major destinations experienced more modest paces of growth.

Urea Imports

Imports into Latvia

In 2022, purchases abroad of urea decreased by -15.3% to X tons for the first time since 2018, thus ending a three-year rising trend. In general, imports, however, enjoyed a resilient expansion. The most prominent rate of growth was recorded in 2015 when imports increased by 111% against the previous year. Over the period under review, imports hit record highs at X tons in 2021, and then fell notably in the following year.

In value terms, urea imports surged to $X in 2022. Over the period under review, imports, however, continue to indicate a significant expansion. The growth pace was the most rapid in 2021 when imports increased by 103%. Imports peaked in 2022 and are likely to continue growth in the immediate term.

Imports by Country

In 2022, Russia (X tons) constituted the largest urea supplier to Latvia, with a 38% share of total imports. Moreover, urea imports from Russia exceeded the figures recorded by the second-largest supplier, Belgium (X tons), twofold. The third position in this ranking was taken by Estonia (X tons), with a 14% share.

From 2012 to 2022, the average annual growth rate of volume from Russia totaled +12.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Belgium (+41.2% per year) and Estonia (+132.9% per year).

In value terms, Russia ($X) constituted the largest supplier of urea to Latvia, comprising 43% of total imports. The second position in the ranking was held by Lithuania ($X), with a 13% share of total imports. It was followed by Belgium, with a 12% share.

From 2012 to 2022, the average annual rate of growth in terms of value from Russia totaled +21.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Lithuania (+10.6% per year) and Belgium (+38.7% per year).

Import Prices by Country

In 2022, the average urea import price amounted to $X per ton, growing by 46% against the previous year. Overall, the import price saw a resilient increase. The most prominent rate of growth was recorded in 2021 an increase of 80% against the previous year. Over the period under review, average import prices attained the peak figure in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was the Netherlands ($X per ton), while the price for Estonia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Russia (+7.4%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform