Iran's fertilizer producers have reduced their granular urea offers to $370/t fob, down from last week's artificially high levels in the mid to high-$380s/t fob, with output set to return to typical levels after curtailments that have been in place since early December.
The offers at $370/t fob are valid for this week. Producers had kept offers notionally high last week in the mid to high-$380s/t fob, but there was no liquidity at these levels and Argus assessed granular urea at $360-370/t fob on 13 March. Producers have yet to return to the market with tenders, but all suppliers have returned plants to full output, including Shiraz's 1.07mn t/yr granular urea unit. Exports are expected to return to more typical rates in April, after suppliers have met domestic and prior commitments.
Production was heavily reduced from the first week of December, largely restricted to just one of Pardis' 1.07mn t/yr granular urea units in the following months. The country frequently experiences urea output cuts in winter as domestic heating and gas consumption are prioritised over industrial production. Iran has a total urea production capacity of 9mn t/yr and typically exports around 5mn t/yr.
