Iran’s Urea Export to Key Markets

Key Markets and Strategic Shifts Amid Global Challenges

Iran has established itself as a significant player in the global urea market, leveraging its robust production capacity. Over the past year, Iran's urea production reached 8.7 million tons, with operational production amounting to 6.7 million tons. Of this, 2.89 million tons were allocated for domestic sales, while 3.8 million tons were designated for export. The total value of urea exports from Iran in the past year stood at $1.6 billion, with an average price of $418 per ton.

Shift in Export Destinations

Historically, India has been Iran’s most crucial urea export destination, accounting for over a quarter of its exports. However, the reimposition of international sanctions on Iran has significantly reduced exports to India. As a result, Turkey and Brazil have emerged as the new leading importers of Iranian urea.

In the past year, Turkey received the largest share of Iran’s urea exports, accounting for 43% of the total. Brazil followed with 13%, and South Africa with 8%, making them the most significant buyers of Iranian urea. Other notable importers include Oman, Mozambique, India, Thailand, and Nigeria.

Key Export Markets

Iraq

A substantial amount of urea produced by Iran’s petrochemical industries, particularly from the Kermanshah Petrochemical Complex, is exported to Iraq. Annually, between 100,000 to 150,000 tons of urea are shipped to Iraq, reflecting the strong trade relationship between the two neighboring countries.

Afghanistan

Afghanistan is another crucial market for Iranian urea. While a significant portion of Afghanistan’s urea production is consumed domestically, the country also benefits from considerable urea exports, further strengthening Iran’s presence in the region.

Turkey

Turkey’s role in Iran’s urea exports has grown considerably, partly due to Turkish stakeholders' involvement in the Iranian petrochemical sector. This close economic relationship has positioned Turkey as the largest importer of Iranian urea.

Brazil and South America

A significant volume of Iran’s urea production is exported to Brazil, underlining the importance of this South American nation in Iran’s export strategy. Iran also plans to expand its export portfolio to Brazil by including polymer products, further solidifying its presence in the South American market.

Turkey

Turkey’s role in Iran’s urea exports has grown considerably, partly due to Turkish stakeholders' involvement in the Iranian petrochemical sector. This close economic relationship has positioned Turkey as the largest importer of Iranian urea.

Brazil and South America

A significant volume of Iran’s urea production is exported to Brazil, underlining the importance of this South American nation in Iran’s export strategy. Iran also plans to expand its export portfolio to Brazil by including polymer products, further solidifying its presence in the South American market.

Europe and Other Regions

Iran is gradually expanding its reach to European countries and other nations in South America, reflecting its strategic diversification of export markets amid geopolitical challenges.

Conclusion

Iran’s urea export strategy has evolved in response to global market dynamics and geopolitical developments. While sanctions have reshaped traditional trade relationships, Iran has successfully identified and cultivated new markets, ensuring the continued growth of its urea export sector. Turkey, Brazil, and South Africa now stand at the forefront of this trade, demonstrating Iran’s adaptability and resilience in the face of international challenges.