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# Middle East Urea Prices: Why Higher FOB Values Do Not Tell the Full Story A higher export price does not always translate into stronger returns for a fertilizer producer. In the Middle East, urea suppliers are facing a difficult combination of restricted shipping routes, vessel delays and rising insurance expenses. These pressures are supporting headline prices while making it harder to move material efficiently to overseas buyers. ## What is driving Middle East urea prices? Nexchem Intelligence lists granular urea at USD 268 per metric tonne FOB Middle East for June 2026, an increase of 14.5% compared with June 2025. Its Q2 2026 grade comparison places prilled urea at USD 252/MT, up from USD 218/MT a year earlier. The main pressure comes from export disruption around the Strait of Hormuz. Major regional suppliers, including QAFCO in Qatar, Fertil in the UAE and SABIC in Saudi Arabia, have faced vessel-loading and dispatch delays. Reduced export availability can tighten global supply, supporting prices even when producers are unable to ship their normal volumes. For buyers comparing supplier quotations, **[Middle East urea pricing by grade and export basis](https://www.nexchemintelligence.com/price-trends/urea-middle-east)** provides a useful reference for understanding how granular and prilled products are moving. ## Why logistics costs are reducing the price advantage The difference between an FOB quotation and the final delivered cost is particularly important during shipping disruptions. Nexchem estimates the additional Hormuz-related surcharge at USD 24–38/MT. Its average surcharge estimate of USD 31/MT substantially reduces the benefit of the USD 34/MT year-over-year increase in the granular FOB reference. Vessel turnaround times and insurance expenses can also affect delivery schedules and working capital. Buyers may face higher landed costs even when the producer's headline quotation appears competitive. This creates a procurement challenge: comparing FOB prices alone can understate the actual cost of securing material at the destination. Freight, insurance, vessel availability and alternative routing all need to be included in the calculation. ## What buyers should monitor next Three factors deserve close attention: - **Export availability:** monitor loading delays and shipment volumes from major Gulf producers. - **Shipping expenses:** assess insurance premiums, vessel turnaround times and alternative routes. - **Destination demand:** follow purchasing activity in India and Europe, where changes in import requirements can influence trade flows. Teams reviewing their sourcing positions can **[request the Middle East urea pricing brief](https://www.nexchemintelligence.com/price-trends/urea-middle-east)** to assess grade-level references, trade-flow information and forward scenarios. The central issue is not simply whether urea prices are rising. It is whether producers can convert those higher quotations into successful deliveries and whether buyers can secure reliable cargoes at manageable landed costs. In a disrupted shipping environment, logistics can matter just as much as production economics.

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