French Urea Imports Surge in 2H 2025

Why It Matters

The spike highlights how CBAM is reshaping European fertilizer trade, raising costs for North‑African supplies and prompting a shift toward domestic or low‑carbon sources, which will affect margins across the sector.

Key Takeaways

• Imports rose 12% YoY, reaching 1.9 mn t.
• December shipments doubled historic monthly average.
• CBAM levy adds €36‑€37 per tonne on North African urea.
• Russian urea supply fell 73% year‑on‑year.
• EU tariff hikes will further pressure non‑EU imports.

Pulse Analysis

The second half of 2025 saw French urea imports jump to 1.15 million tonnes, a 37 % increase over the same period a year earlier. Buyers accelerated purchases ahead of the EU’s Carbon Border Adjustment Mechanism (CBAM), which imposes a carbon‑intensity levy on imported nitrogen fertilizers. December alone recorded 279,000 tonnes, more than double the three‑year monthly average. This front‑loading eases spring‑time supply pressure but also locks importers into higher CBAM charges, especially for Egyptian and Algerian shipments that carry a default levy of €36‑€37 per tonne.

The surge reshapes trade dynamics as the CBAM makes non‑EU urea comparatively costlier, prompting a shift toward European producers. While the Netherlands and Germany together supplied over 430,000 tonnes in 2025, Russian deliveries collapsed to 43,000 tonnes, a 73 % drop, and are set to face additional anti‑dumping duties of €60‑€70 per tonne from July. Combined with the EU’s standard 6.5 % tariff, these measures tighten margins for importers reliant on North African sources. Consequently, French buyers are weighing verified plant emissions data to reduce CBAM liabilities, a practice that could become industry‑wide.

Looking ahead, Western Europe’s urea capacity of roughly 5.5 million tonnes per year remains constrained by high gas and feedstock costs, limiting the ability to fully offset reduced imports. The 2026 CBAM liability calculation, based on quarterly EU ETS auction prices, will add further price volatility. Importers may increasingly diversify toward domestic or low‑carbon sources, negotiate longer‑term contracts, and explore strategic stockpiling to hedge against tariff escalations. Monitoring the evolution of EU carbon pricing and the forthcoming tariff revisions will be critical for French fertilizer firms aiming to maintain competitiveness in a tightening market.

French urea imports surge in 2H 2025

17 Feb 2026 14:59 GMT · By Dana Hjeij

London, 17 February (Argus) — France imported more than 1.15 mn t of urea in July‑December, up from 842,000 t a year earlier as buyers accelerated purchasing ahead of the EU's carbon border adjustment mechanism (CBAM) taking effect on 1 January.

France received 279,000 t of urea in December, compared with an average of around 137,000 t during the month over the past three years.

The increase in imports in late 2025 has eased the pressure on buyers for the spring, although importers will still need to buy around 560,000 t of urea in January‑June to align with average intake over the past two seasons (July‑June). France imported around 1.57 mn t in the 2024‑25 season, 1.68 mn t in 2023‑24 and 1.86 mn t in 2022‑23.

Only three vessels — the Sandera, Grona Vulture and Kwai Kwai — with a combined 64,400 t of Egyptian and Algerian urea were confirmed for arrival over 1 January‑23 February, according to data from trade analytics platform Kpler. The slowdown in arrivals was widely anticipated after strong deliveries in the fourth quarter, and imports have been further compounded by farmer protests, uncertainty surrounding CBAM costs, and adverse weather that delayed fieldwork.

France imported roughly 1.9 mn t of urea in the 2025 calendar year, up by 12 % on the year and about 7 % above the 2022‑24 average.

CBAM set to reshape trade flows

Urea imports are subject to a carbon‑intensity‑based levy since the imposition of the CBAM. The regulation is expected to influence trade flows into France and enhance the attractiveness of buying urea from European producers. But the extent to which this trend will develop is unclear at this stage.

Egypt and Algeria were France's largest suppliers of urea last year, accounting for 33 % and 25 % of arrivals, respectively, at 622,000 t and 474,000 t. France imported 146,000 t from Belgium, but part of this was likely product re‑exported through Ghent. Nigerian shipments to France were minimal at 48,000 t.

Default CBAM charges were assessed at around €36/t ($43/t) for Egyptian urea and €37/t for Algerian product on 16 February, based on Argus EU emissions trading system (ETS) prompt indications. Final CBAM liabilities will be calculated from quarterly average EU ETS auction prices in 2026. Importers also have the option to use emissions data specific to verified plants, in a bid to incur a lesser charge than the country default.

Russian supplies dropped sharply to 43,000 t in 2025 from 162,000 t a year earlier, and this trend is expected to persist. EU tariffs on Russian fertilizers will step up again in July, raising duties on nitrogen products under tariff code 3102 to €60/t — in addition to the 6.5 % standard tariff and any applicable anti‑dumping duties. Many 3105‑coded products will attract a €70/t charge from July. Current July 2025 – June 2026 tariff rates are at €40/t and €45/t, respectively.

Inflows of urea from European origins remained significant last year, with 272,000 t arriving from the Netherlands and 164,000 t from Germany. Combined deliveries from Spain and Italy were limited to 62,000 t.

Western Europe's urea capacity stands at roughly 5.5 mn t/yr, but production has been constrained in recent years by elevated feedstock and gas costs.