automotive – MBF Group

Uncoated urea, also known as technical urea or carbamide, is an extremely versatile chemical compound with a wide range of applications in various industries. Its particular importance stems from its high nitrogen content, making it one of the most effective fertilizers used in agriculture. In addition, urea is a key raw material in the chemical industry, where it is used, among other things for the production of resins, adhesives and explosives.

In the automotive industry, it plays an important role in reducing exhaust emissions through its use in selective catalytic reduction (SCR) technology. With its wide range of applications, uncoated urea is one of the most important chemicals in modern industry.

MBF Group offers sales of high-quality urea tailored for a variety of industrial and agricultural applications. Thanks to the advanced production process of our contractors, urea from MBF Group is characterized by high purity, meeting the highest quality standards. We sell “A” and “B” grade product to customers throughout Europe.

Use of uncoated urea

Uncoated urea, also known as technical urea, is a versatile chemical compound with a wide range of applications in various industries. Here are some key areas where uncoated urea is used:

Fertilizer production

Urea is one of the most important nitrogen fertilizers used in agriculture. It has the highest nitrogen content (about 46%) among other fertilizers, which makes it very effective in providing this element to plants. Urea is easily absorbed by plants and promotes the development of the root system, as well as enhancing the overall resistance of plants.

Chemical industry

Urea is used in the production of urea-formaldehyde resins, adhesives and explosives. It is also used as a raw material in exhaust gas purification, such as in the automotive industry. Urea is used in the automotive industry mainly as an ingredient in exhaust emission reduction systems, particularly in selective catalytic reduction (SCR) technology. Here are the key applications of urea in this sector:

1. Reduction of NOx emissions.

Urea is used in SCR systems to reduce oxides of nitrogen (NOx) in diesel engine exhaust. In this process, urea is injected into the exhaust system, where it reacts with NOx, converting them into nitrogen and water, significantly reducing harmful emissions into the atmosphere.

2. AdBlue liquid.

Urea in the form of a 32.5% solution in demineralized water, known as AdBlue, is commonly used in diesel vehicles that are equipped with SCR systems. AdBlue is a key component in meeting Euro 6 emission standards, making it essential for modern vehicles.

3. Engine Performance.

The use of urea in SCR systems optimizes engine performance, leading to better fuel efficiency. By reducing NOx emissions, engines can operate under more efficient conditions, resulting in lower fuel consumption.

4. Ecological aspects.

The use of urea in the automotive industry contributes to reducing the environmental impact of transportation. By effectively reducing NOx emissions, vehicles become more environmentally friendly, which is particularly important in the context of increasing air protection requirements. As a key ingredient in emission reduction systems, urea plays an important role in modern automobiles, contributing to improved air quality and engine efficiency

Cosmetics and medicine

Due to its moisturizing, exfoliating and regenerating properties, urea is widely used in the cosmetic industry. It is found in the composition of many creams, ointments and lotions, especially those designed for dry, rough and dehydrated skin. In medicine, it is used to treat skin diseases involving excessive dryness and keratosis of the epidermis.

1. Moisturizing the skin.

Urea acts as a humectant, meaning that it attracts and binds water molecules in the skin. As a result, it effectively moisturizes and maintains proper moisture levels, which is especially important for those with dry and dehydrated skin.

2. Exfoliation of the epidermis.

Urea has keratolytic properties, meaning that it splits the keratin chains in the skin, helping to reduce the thickness of the stratum corneum. This action is particularly useful in foot care products and in formulations to combat keratinized skin.

3. Aiding regeneration.

Thanks to its regenerative properties, urea is often used in cosmetics designed for sensitive skin, atopic skin and after sunburn.cIt helps soothe inflammation and speeds up the healing process.

4. Antibacterial action.

Urea exhibits antiseptic action, making it an effective ingredient in products for oily and acne-prone skin.cIt helps reduce bacteria and inflammation, helping to improve skin condition.

5. Strengthening the protective barrier.

Urea increases the permeability of the stratum corneum, which facilitates the penetration of other active ingredients into the skin. It also strengthens the skin’s natural protective barrier, which is important for its health and resistance to external factors.

6. Use in various products.

Urea is used in a wide range of cosmetics, including creams, lotions, ointments and foot care products. Its various concentrations allow it to be tailored to the specific needs of the skin. Thanks to its versatile properties, urea is a valuable ingredient in cosmetics, addressing a variety of skin care and therapeutic needs.

Other uses of urea

Uncoated urea can also be used to remove ice from airport runways and as a strong denaturant for proteins in laboratories. Before using urea in the production of any product, it is important to check regulations regarding safety, environmental compliance and other issues related to its use. In addition, it is necessary to follow proper safety and hygiene procedures to prevent possible dangers to human health and the environment. In the automotive industry, urea is a key ingredient used in exhaust emission reduction systems, especially selective catalytic reduction (SCR) technology.

However, as technology develops and new environmental regulations are introduced, alternatives to urea are emerging. Here are some of them:

1. Alternative fuels.

As part of the drive toward decarbonization, the automotive industry is increasingly turning to alternative fuels such as hydrogen and biofuels. As a clean fuel, hydrogen emits only water vapor, making it an attractive alternative to traditional internal combustion engines.

2. Exhaust Gas Recirculation (EGR).

Systems Exhaust gas recirculation (EGR) systems are used to reduce NOx emissions by reintroducing a portion of the exhaust gas into the combustion chamber. This approach reduces the combustion temperature, leading to less NOx production.

3. Other chemical additives.

The automotive industry is developing various chemical additives that can act as replacements for urea in SCR systems. Examples include various forms of ammonia that can be used in NOx reduction processes.

4. Electric and hybrid .

Automotive developments, such as the development of electric and hybrid vehicles, are reducing the need for urea. Electric vehicles have no exhaust emissions, eliminating the need for SCR systems.

5. Green energy.

The use of renewable electricity in vehicles can reduce emissions to zero, eliminating the need for urea in the context of reducing exhaust emissions.

6. New catalytic technologies.

Research on new types of catalysts that can be more effective in reducing NOx emissions without the need for urea is also underway. Such innovations could lead to more sustainable solutions in the automotive industry. As the automotive industry evolves, alternatives to urea are also developing, which could further reduce emissions and improve vehicle energy efficiency.

Summary. Technical urea, also known as uncoated urea or automotive urea, is a chemical with a wide range of applications in various industries. Its main applications include:

Agriculture: as a nitrogen fertilizer, providing an essential element for plant growth.
Industry: as a raw material for the production of other chemical compounds, such as resins, adhesives or cleaning agents.
Wastewater treatment: for removal of ammonium compounds.

Automotive urea price forecast for the second half of 2024

Relative Stability with Growth Potential

Based on current data and market trends, we can expect automotive technical urea prices to remain relatively stable in the second half of 2024. However, demand for this product is projected to continue growing, driven by several key factors:

Increased agricultural production: The growing global demand for food is leading to intensified agricultural production, which in turn increases the demand for fertilizers, including urea.
Industrial development: Urea is widely used in many industrial processes, such as the production of plastics, adhesives, and paints. The growth of these sectors will support demand for this raw material.
Increased use in wastewater treatment: Growing environmental awareness and increasingly stringent water quality standards are leading to increased use of urea in wastewater treatment processes.

Factors Influencing Price Stability

Although demand for urea will grow, prices are expected to remain relatively stable. This is due to several factors:

Availability of raw materials: Urea production is highly dependent on the availability of natural gas and ammonia. If the supply of these raw materials is stable, then urea prices should also remain at a similar level.
Increased production efficiency: Urea producers are constantly investing in new technologies that allow for increased production efficiency while reducing costs.
Market competition: The presence of many urea producers on the market leads to intense competition, which limits the possibility of price increases.

Potential Risks and Uncertainties

Although the forecasts are generally positive, it is important to consider several factors that may affect urea prices in the second half of 2024:

Volatility of raw material prices: The prices of natural gas and ammonia may fluctuate depending on the geopolitical situation and changes in demand in the energy market.
Regulatory changes: The introduction of new regulations governing the production or use of urea may affect production costs and the availability of this product.
Random events: Events such as natural disasters or armed conflicts can disrupt supply chains and lead to price increases.

Conclusions

In summary, it is expected that automotive technical urea prices will be relatively stable in the second half of 2024, with growing demand. However, it is necessary to be prepared for potential price fluctuations caused by external factors.

Recommendations

Urea producing companies: Investing in new technologies and increasing production efficiency to maintain competitiveness in the market.
Companies using urea: Monitoring market trends and adjusting purchasing strategies to potential price changes.
Investors: Considering investments in the fertilizer production sector, while taking into account the risk factors associated with raw material price volatility and government regulations.

Demand for uncoated urea, also known as technical or automotive urea, is forecast to grow significantly in the second half of 2024. This growth is due to several key factors: increased agricultural production, industrial development and increased use in wastewater treatment. Global agricultural production is expected to grow, which will directly affect the demand for urea used as a fertilizer. Global population growth and increased food needs are driving the growth of the agricultural sector, which makes heavy use of urea to fertilize crops.

The chemical and manufacturing industries in developing countries are booming. Urea is a raw material used in many industrial processes, such as the production of melamine resins, adhesives and paints, pharmaceuticals, cosmetics, agriculture, which increases its demand in these sectors.

Growing demand for urea is also evident in the wastewater treatment industry. Biological wastewater treatment processes that use urea as a source of nitrogen are key to maintaining adequate treatment parameters and efficient removal of pollutants. In developing countries, where urbanization and industrialization are proceeding at a rapid pace, the need for efficient water and wastewater management is becoming a priority, further stimulating demand for urea in the water and wastewater sector.

Stable urea prices

Technical urea prices are expected to remain stable in the second half of 2024, despite minor fluctuations due to seasonal and geopolitical factors. Price stability is the result of a balance between increasing demand and relatively constant supply. Nevertheless, the industry will face some challenges that could affect this balance. Increased demand during the peak farming season can lead to temporary price increases. A drop in demand during off-season periods may result in slight price reductions.

Forecasts and challenges for the urea market in the second half of 2024

Reduced availability of raw materials:

Urea production depends heavily on the availability of raw materials such as natural gas and ammonia. Possible problems with the availability of these raw materials could lead to an increase in production costs and, consequently, to an increase in urea prices on the market.

Tightening environmental regulations:

Tightening environmental regulations on emissions may affect urea production. The introduction of stricter standards may increase manufacturers’ operating costs, which could translate into prices for the final product.

Geopolitical instability:

Political instability in different regions of the world can disrupt global supply chains. Conflicts, sanctions and political changes can lead to difficulties in transporting raw materials and finished products, which can also affect urea prices and availability.

The world’s largest urea producers:

The largest producers of uncoated urea in the world include:

Yara International (Norway)
EuroChem (Russia)
OCI (Morocco)
Uralchem (Russia)
CF Industries Holdings Inc. (United States)
Indorama Ventures Public Company Limited (Thailand)
SABIC (Saudi Arabia).
Helm AG (Germany)
Acteon Group (China)
Prayon (Belgium)

The largest exporters of automotive urea:

The world’s largest exporters of uncoated urea include:

China
Russia
Ukraine
Saudi Arabia
Oman
Egypt
Morocco
United States
Canada
Vietnam

However, it should be remembered that the situation in the uncoated urea market is dynamic and constantly changing. Forecasts and data on major producers and exporters may change depending on current market conditions.

Summary

The technical urea market in the second half of 2024 appears to be in a phase of rapid demand growth, driven by the development of agriculture, the chemical industry and wastewater treatment. Despite the projected price stability, there are several challenges that could affect the market. Reduced availability of raw materials, tighter environmental regulations and geopolitical instability are all factors that urea producers and consumers will have to watch closely and respond to.

Urea, also known as carbamide, plays a key role in various spheres of life, from agriculture to cosmetics to the chemical industry. Its distinctive chemical properties make it irreplaceable in many fields, and its importance continues to grow in 2024. However, it is not only its chemical composition that is of interest, but also its unique physical properties.

Properties of urea

Urea, with the chemical formula CO(NH2)2, is a colorless, crystalline compound that is distinguished by its high nitrogen content of up to 46.6%. Its hygroscopicity, or ability to absorb moisture from the environment, makes it an ideal ingredient for many applications. In addition, its ease of dissolution in water, ethanol and ammonia makes it a highly versatile chemical raw material.

Urea applications

Fertilizer: In agriculture, urea is one of the most widely used nitrogen fertilizers in the world. Its effectiveness in fertilizing a variety of crops, such as cereals, corn, canola and vegetables, makes it an integral component in supporting crop productivity and yield.
Chemical industry: Urea plays an important role in the production of a variety of chemicals, including resins, paints, plastics and drugs. Its versatility makes it applicable to a wide range of industrial products and processes.
Textile industry: In the textile industry, urea is used as a fabric dressing. It makes fabrics soft and crease-resistant, which increases their quality and durability.
Environmental protection: Urea is also important in environmental protection. It is used in wastewater treatment processes and as a reducer of nitrogen oxide emissions from power plants. Thanks to its chemical properties, it helps reduce the negative impact of industry on the environment.

Urea market and trade in Poland and Eastern Europe in 2024

The urea market in Poland and Eastern Europe in the current year is characterized by dynamic changes that have a significant impact on trade and availability of this key nitrogen fertilizer.

Price increase

Strong urea price growth is now a key feature of the market. The main reason for this phenomenon is the escalation of the war conflict in Ukraine. The war has caused disruptions in supply chains, and has driven up the price of raw materials, including natural gas, which is essential to the urea production process.

Urea deficiency

The war in Ukraine and sanctions imposed on Russia are also resulting in urea shortages on the market. Russia is one of the world’s largest producers and exporters of urea, and supply constraints from that country have a direct impact on the availability of this raw material in Poland and Eastern Europe.

Increased demand

Despite high prices and shortages, demand for urea remains high. This is because farmers in the region need to fertilize their crops to ensure adequate yields and maintain food security. This increased demand puts additional pressure on the market and contributes to keeping urea prices high.

In light of these developments, the urea market in Poland and Eastern Europe remains unsettled and unpredictable. Fertilizer traders and producers must respond flexibly to the changing situation, seeking new sources of supply and strategies to meet the growing needs of agriculture in the region. At the same time, the stabilization of the geopolitical situation in the Eastern European area will be a key factor influencing the further development of the urea market in the coming months.

Factors influencing current market trends

War in Ukraine: The war in Ukraine is having a huge impact on the urea market in Poland and Eastern Europe. The hostilities have led to disruptions in supply chains, rising commodity prices and urea shortages.
Sanctions on Russia: Sanctions imposed on Russia have exacerbated problems in the urea market. Indeed, Russia is one of the largest producers and exporters of urea in the world, and sanctions prevent it from trading with many countries.
Increase in energy prices: Rising energy prices are also affecting the urea market. This is because natural gas is the key raw material used to produce urea.
Climate change: Climate change could also affect the urea market. Droughts and other extreme weather events can hamper urea production and transportation.

Future outlook: prices, availability and the search for alternatives

The coming six months in the urea market will continue to be shaped by a number of factors, both geopolitical and economic. Here are the main predictions for the coming months:

Urea prices likely to remain high

Urea prices are expected to remain high in the next six months. The continuation of the war in Ukraine and the sanctions imposed on Russia will be the main factors keeping these prices high.

Urea availability may improve somewhat

Some countries, such as Saudi Arabia and Qatar, are increasing their urea production to meet growing market demand. As a result, there is a chance that urea availability will improve slightly in the coming months. However, caution should be exercised as there may still be disruptions to supply chains due to logistical and geopolitical difficulties.

Farmers can look for alternatives

Due to high prices and potential difficulties with availability, farmers may have to look for fertilizer alternatives. This could include increased use of organic fertilizers or more efficient use of mineral urea. Developments in agricultural technology and greater environmental awareness may prompt farmers to seek more sustainable and efficient fertilization methods.

However, it should be borne in mind that the situation in the urea market is dynamic, and many factors may affect its further development. As a result, future forecasts are subject to a degree of uncertainty, and flexibility and the ability to adapt quickly will be key for all market participants.

For MBF Group SA, which markets urea in Poland and Central and Eastern Europe, the coming months will be a time of challenges, but also an opportunity to explore new opportunities and strategies. Invariably high urea prices and potential availability difficulties will be the main challenges for MBF Group SA. However, with experience in the industry and flexibility in decision-making, the company can survive these difficulties and continue to serve its customers effectively.

The improved availability of urea as a result of increased production in some countries could be a positive signal for MBF Group SA. By taking advantage of these opportunities, the company can expand its portfolio of suppliers and become more competitive in the market. In addition, the growing interest in fertilizer alternatives may create new opportunities for MBF Group SA. Seeking out and offering customers innovative and more sustainable products can bring additional growth and strengthen the company’s position in the market.

The automotive sector is one of the most growing industries in Europe. Its constituent companies manufacture automotive products or are in some way related to the industry. The fact that the automotive industry is one of the key branches of the EU economy is not insignificant. According to recent calculations, it accounts for 7% of the European Union’s GDP; provides employment for 6% of European workers, and generates 12% of the value of exports, yielding a surplus of more than 84.4 billion euros. Each year, automotive companies invest €57.4 billion in R&D, accounting for 28% of the value of EU research and development (R&D) expenditures. Also closely related to the automotive industry are all areas around automobiles, such as automotive financial services (insurance and credit), transportation services, leasing, road infrastructure and fuel production and sales.

Of all the technological breakthroughs of the 21st century, few have had as big an impact on the world as e-commerce. Virtual sales channels are driving the growth of today’s largest companies. The e-Commerce market has changed the way consumers and companies choose products and interact with brands. However, in the automotive industry, this revolution is occurring with great slippage. In 2017, online sales in the industry’s major markets amounted to only 1.5%. That’s 10x less than in the tech industry. However, all experts predict that despite these peculiarities, online sales of parts will grow. There are already large players trading these goods in the e-commerce market, and the coronavirus outbreak has only accelerated the process.

The SARS-CoV-2 pandemic has unleashed e-commerce in industries such as FMCG, beauty and electronics. In the future, e-commerce can also be expected to play an increasingly important role in the automotive industry, although it is difficult to imagine that a driver can successfully select, for example, the right clutch for his car. It seems that e-commerce will necessarily affect traditional sales. Online prices are often a reference for us – especially when making larger purchases. The Internet may struggle especially for DIY repairs.

The pandemic has forced businesses to adapt their operations to new realities. While many tasks and duties are performed remotely, this is not the case in industries with manufacturing at their core. Despite such difficulties, some entrepreneurs point out that selected elements of their business can be carried out via the Internet. A special potential lies in sales, as some solutions in this area are already being used.

The automotive sector represents the second largest sector in Poland. Its continuous development since the beginning of the political changes in our country has resulted in the fact that it is now one of the most solid foundations of our country’s economy. Over the past decade, Poland’s automotive industry has experienced 100% growth as measured by sold production. This not inconsiderable success, making automotive the second largest industrial sector in Poland (10.1% share), is not a matter of chance, but the result of consistent work by entrepreneurs and the country’s investment attractiveness. Both in terms of absolute numbers and in qualitative terms, Poland in this part of Europe is the country with the largest number of working-age people with solid technical education, both at the secondary and tertiary levels.

Despite a recovery in demand, the effects of the coronavirus crisis could still be felt by parts and components manufacturers this year. A recent survey by Santander Bank Polska shows that two-thirds of the country’s automotive companies expect revenue growth this year compared to pre-pandemic 2019, while only 17 percent of respondents see a drop in demand as a potential threat.

Automotive companies should adapt to current capacity and employment needs, actively participate in the development of new projects, use modern technologies, make improvements to existing production processes to simultaneously maximize productivity and minimize labor intensity.

The aftermarket is not exactly the same as other major online sales sectors. To succeed, the industry must recognize and overcome many challenges. First, a small number of car users have the skills and enthusiasm to do more than basic maintenance and repair work with their own hands. It’s no coincidence that the best-selling replacement parts on the Internet are those that are easiest to install yourself, such as light bulbs or wiper blades.

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Uncoated urea. Production, properties and applications

Use of uncoated urea

Fertilizer production

Chemical industry

Cosmetics and medicine

Other uses of urea

Summary. Technical urea, also known as uncoated urea or automotive urea, is a chemical with a wide range of applications in various industries. Its main applications include:

Automotive urea price forecast for the second half of 2024

Portfolio kontrahentów i partnerów biznesowych

Analysis: automotive technical urea in the second half of 2024

Forecasts and challenges for the urea market in the second half of 2024

The world’s largest urea producers:

The largest exporters of automotive urea:

Summary

Urea: properties, applications and a dynamic market

The automotive industry in Poland – analysis and prospects