Fertilizer producer Brunei Fertilizer Industries (BFI) has sold 6000 t of granular urea at around US$710/t fob, following its tender on 12 March 2026, as initially reported by Argus Media.
The cargo has been arranged to load from the end of May to the first half of April. BFI had offered two lots of 6000 t of granular urea under the tender. Traders had expected bids to emerge up to around US$700/t fob before the tender's close.
There is a marked differential between smaller and larger cargoes in the region, with cargoes of around 25 000 - 30 000 t or more commanding premium prices due to the option to ship to Australia. Prices for larger lots have been pushed up to around US$750/t fob Southeast Asia basis levels in Australia, a price with which buyers in local Southeast Asian markets are unable to compete.
The ongoing war in the Middle East, and the effective closure of the strait of Hormuz, has left Australia particularly vulnerable, given that it is entering its peak import months for urea ahead of its winter season. Australia typically imports about two-thirds of its urea from the Middle East, with Oman now the only option to buy from in the region. A lack of availability of urea from Indonesia and China is compounding the tightness in Asia-Pacific, leaving buyers to source what they can from Malaysia, Brunei, and Vietnam.
Original article written by Harry Minihan on Argus Media.