China’s coal-based urea insulates its farmers from global fertiliser turmoil

By Ella Cao, Colleen Howe and Naveen Thukral April 7, 20261:46 PM GMT+8
https://www.reuters.com/world/asia-pacific/chinas-coal-based-urea-insulates-its-farmers-global-fertiliser-turmoil-2026-04-07/

[1/2]Farmers load sacks of fertiliser into a seeder on a wheat field in Nanyang, Henan province, China October 13, 2021. REUTERS/Aly Song/File Photo Purchase Licensing Rights

[2/2] A worker stands next to sacks of fertilisers unloaded from a cargo ship at a port in Lianyungang, Jiangsu province, China February 15, 2025. cnsphoto via REUTERS Purchase Licensing Rights

  • China has ample urea to support nitrogen-hungry crops like corn
  • Domestic urea prices only a third of international benchmarks
  • China unlikely to ease export curbs, some analysts say

BEIJING/SINGAPORE, April 7 (Reuters) – Farmers around the world may be switching to less nutrient-hungry crops as the Iran war hits the supply ​of fertilisers, but in China, they’re sitting pretty with plenty of stock thanks to the country’s rather unique reliance on coal to ‌produce urea.

However, some analysts say China may not allow exports of urea – the most widely used fertiliser globally – after spring planting as it normally does, as that could drive up local prices. Beijing typically waits to see if there is a surplus in May before assessing how much can be shipped abroad.

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