Urea Prices Continue to Climb; Pushing DEF Prices up
According to diesel exhaust fluid (DEF) marketers, the price urea reached $442 a ton in June, up from $380 a ton in May. This represents a $62 per ton hike in price, which equates to a $0.08 to 0.10 per gallon increase in the price of DEF. Since the start of the year, the escalating price of urea has pushed DEF prices up by close to $0.30 a gallon, an increase of nearly 45% over the period.
The upward movement in the price of urea is due to strong demand for fertilizer and higher raw material and transportation costs. Although urea prices historically soften in July, there is little to indicate that the ramp up in price is leveling off. Instead, with five domestic urea plants having planned shut downs this summer, product is in short supply and distributors are reportedly on strict allocation.