China: Urea Market 2024

Urea Market Size in China

In 2022, the Chinese urea market increased by 10% to $X, rising for the second year in a row after two years of decline. Overall, consumption posted notable growth. Urea consumption peaked at $X in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

Urea Production in China

In value terms, urea production contracted to $X in 2022 estimated in export price. Overall, production continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2021 when the production volume increased by 41%. As a result, production reached the peak level of $X, and then shrank in the following year.

Urea Exports

Exports from China

In 2022, overseas shipments of urea decreased by -46.4% to X tons, falling for the second year in a row after two years of growth. In general, exports showed a deep downturn. The most prominent rate of growth was recorded in 2019 with an increase of 102% against the previous year. Over the period under review, the exports hit record highs at X tons in 2015; however, from 2016 to 2022, the exports remained at a lower figure.

In value terms, urea exports shrank rapidly to $X in 2022. Over the period under review, exports continue to indicate a abrupt downturn. The pace of growth appeared the most rapid in 2019 when exports increased by 82% against the previous year. Over the period under review, the exports reached the peak figure at $X in 2014; however, from 2015 to 2022, the exports failed to regain momentum.

Exports by Country

India (X tons) was the main destination for urea exports from China, with a 44% share of total exports. Moreover, urea exports to India exceeded the volume sent to the second major destination, Pakistan (X tons), threefold. South Korea (X tons) ranked third in terms of total exports with a 14% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to India stood at -9.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Pakistan (+3.5% per year) and South Korea (+2.4% per year).

In value terms, India ($X) remains the key foreign market for urea exports from China, comprising 43% of total exports. The second position in the ranking was held by South Korea ($X), with a 15% share of total exports. It was followed by Pakistan, with a 14% share.

From 2012 to 2022, the average annual growth rate of value to India stood at -5.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: South Korea (+7.2% per year) and Pakistan (+6.7% per year).

Export Prices by Country

In 2022, the average urea export price amounted to $X per ton, picking up by 37% against the previous year. Overall, the export price saw a temperate expansion. The pace of growth was the most pronounced in 2021 when the average export price increased by 55% against the previous year. Over the period under review, the average export prices attained the peak figure in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Bangladesh ($X per ton), while the average price for exports to Pakistan ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Bangladesh (+10.9%), while the prices for the other major destinations experienced more modest paces of growth.

Urea Imports

Imports into China

In 2022, supplies from abroad of urea increased by 11% to X tons, rising for the second consecutive year after two years of decline. Over the period under review, imports, however, showed a deep downturn. The growth pace was the most rapid in 2018 when imports increased by 3,807%. Imports peaked at X tons in 2012; however, from 2013 to 2022, imports remained at a lower figure.

In value terms, urea imports amounted to $X in 2022. In general, imports, however, showed a deep downturn. The most prominent rate of growth was recorded in 2021 when imports increased by 1,587% against the previous year. Imports peaked at $X in 2012; however, from 2013 to 2022, imports stood at a somewhat lower figure.

Imports by Country

In 2022, Uzbekistan (X tons) constituted the largest urea supplier to China, accounting for a 81% share of total imports. Moreover, urea imports from Uzbekistan exceeded the figures recorded by the second-largest supplier, Germany (X tons), more than tenfold. Japan (X tons) ranked third in terms of total imports with a 2.8% share.

From 2012 to 2022, the average annual growth rate of volume from Uzbekistan totaled -1.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Germany (+41.1% per year) and Japan (+45.1% per year).

In value terms, Uzbekistan ($X) constituted the largest supplier of urea to China, comprising 54% of total imports. The second position in the ranking was held by Germany ($X), with a 19% share of total imports. It was followed by Japan, with a 7.3% share.

From 2012 to 2022, the average annual growth rate of value from Uzbekistan totaled -2.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Germany (+43.1% per year) and Japan (+33.2% per year).

Import Prices by Country

The average urea import price stood at $X per ton in 2022, waning by -7.5% against the previous year. Over the period under review, the import price, however, enjoyed modest growth. The most prominent rate of growth was recorded in 2017 when the average import price increased by 214%. As a result, import price attained the peak level of $X per ton. From 2018 to 2022, the average import prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Germany ($X per ton), while the price for Uzbekistan ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Oman (+3.2%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform

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