KARACHI: International urea prices have plunged to $450 per tonne from a peak of around $900 after China resumed supplies, Arif Habib Ltd (AHL) said in a report.
At its analyst briefing on Friday, Engro Fertilisers Ltd reported that China had increased its urea supply.
Global urea prices surged this year and peaked near $935-$959 per tonne in April following geopolitical conflict in the Middle East and the closure of the Strait of Hormuz in late February.
However, the report said that DAP (Diammonium Phosphate) prices remain elevated at $910 per tonne due to higher sulphur and ammonia costs.
The regional war has severely disrupted oil and gas supplies, affecting production and increasing the cost of by-products like DAP.
Major producers like China have maintained strict DAP export bans or tightening controls to prioritise domestic availability. Facility maintenance outages and regional production slowdowns have further constrained spot availability.
AHL said Pakistan’s total urea market is expected to reach 6.5 million tonnes in CY26 and anticipates healthy sales in 4QCY26, supported by the industry’s demand outlook and expected market off-take, barring unforeseen developments.
Published in Dawn, October 24th, 2026
