China Nitrogenous Fertilizers Market Overview, 2031

Key Insights

• China is the world's largest nitrogen fertilizer producer, accounting for approximately one-third of global output. Yet despite this scale, the market paradoxically exhibited a clear "increase without profit" phenomenon in 2025 while production and exports soared to new heights, the overall profit level of the industry dropped significantly, with manufacturing profits plummeting 75% year on year and the loss-making enterprise ratio expanding to 47.1%.
• The Chinese nitrogen fertilizer industry is structurally insulated from global market turmoil through a unique set of policy controls. As the world's fertilizer market has been thrown into chaos by the Strait of Hormuz blockade which carries approximately 30% of global fertilizer trade China has become a "price depression" globally, with domestic urea prices maintaining stability around RMB 1,800 per tonne even as international prices surged to over $700 per tonne.
• The core of China's nitrogen fertilizer production is fundamentally different from that of almost every other major producer. While almost all international nitrogen fertilizer production relies on natural gas, approximately 80% of China's nitrogen fertilizer production is based on coal, which is domestically sourced and less affected by international energy market fluctuations.
• China's export policy has emerged as the most consequential single factor shaping both domestic and global nitrogen markets. After a brief period of relatively open exports in 2025 when a total of approximately 4.6 million tonnes of urea export quotas were allocated the policy pendulum swung sharply toward restriction in 2026, effectively cutting off most exports during the spring farming peak and triggering a global scramble for alternative supplies.

Market Outlook

• According to the research report, "China Nitrogenous Fertilizer Market Outlook, 2031," published by Bonafide Research, the China Nitrogenous Fertilizer Market is anticipated to add to more than USD 308.15 Million by 2026–31.
• The supply outlook for 2026 is one of near-record abundance. 2026 remains a concentrated period for new nitrogen fertilizer capacity additions, with approximately 5.07 million tonnes of new urea production capacity expected to commence operations, increasing total urea supply capacity to 77.5 million tonnes annually. Urea production is expected to reach a record 76.5 million tonnes, while total nitrogen fertilizer production is forecast at approximately 54 million tonnes.
• On the demand side, agricultural nitrogen fertilizer consumption is expected to stabilize, while industrial uses continue to expand. Agricultural urea demand is estimated at approximately 43 million tonnes, while non-agricultural sectors including manufactured boards, flue gas denitrification, diesel exhaust fluid, and melamine are expected to account for approximately 23 million tonnes.
• The nitrogen fertilizer market is experiencing the impact of an "empty window period" pressure. By late May 2026, with agricultural fertilizer demand in an off-season and industrial demand persistently weak, the domestic urea spot market continued its sluggish consolidation pattern, with many manufacturers facing order receipt pressure.
• Farmers across China have entered the spring planting season under stable price conditions. The 2026 Spring Nitrogen Fertilizer Market Situation Analysis Conference conveyed a clear signal during the spring planting season of 2026, national nitrogen fertilizer resources are generally sufficient, and under the policy control of "supply assurance and price stability," market prices are expected to show a generally stable, regionally differentiated, and fluctuating operational posture.

Import-Export Data

• 2025 was a record year for China's fertilizer and urea exports. According to customs statistics, China's total fertilizer exports reached 46.27 million tonnes in 2025, a 44% increase year-on-year, with cumulative export value reaching $13.755 billion, up 57.9% year-on-year. Nitrogen fertilizer exports reached 9.34 million tonnes (pure nitrogen equivalent), an increase of 68.6%. Among these, urea exports reached 4.894 million tonnes (physical weight), an 17.8-fold increase over the previous year.
• China's urea export pricing created significant profits for producers during the 2025 window. The average urea export price in 2025 was $410.2 per tonne, up 14.3%, and was more than RMB 1,000 per tonne higher than domestic prices, generating approximately RMB 5.9 billion in direct benefits. However, 2025 profitability proved elusive overall due to low domestic prices: despite record production and export volumes, the nitrogen fertilizer manufacturing industry recorded only approximately RMB 2 billion in total profits, down 75% year-on-year.
• Export control policies in 2025 used a batch-style quota distribution model. Approximately 4.6 million tonnes of total export quotas were issued across four batches, effectively relieving the overseas market supply gap while bringing substantial profits to domestic enterprises. However, the 2026 policy tightening has cut off export channels, and off-season inventory pressure may re-emerge, potentially leading some enterprises to reduce operating rates or adjust product structures in response.

Segment Analysis

China Nitrogenous Fertilizer Market By Product Type
• Urea is China’s largest nitrogen fertilizer product, driven by its coal-based ammonia industry and massive grain demand. Annual production is estimated at 55-70 million tons, supported by approximately 80-120 production plants, many integrated with coal gasification and ammonia units. Manufacturing capacity is around 75-90 million tons per year, while exports range from 3-6 million tons annually, mainly to Southeast Asia, Africa, and South America. Imports are limited at 0.5-1.2 million tons, mainly specialty grades.
• Ammonium nitrate in China is tightly regulated due to explosive-use controls, with limited agricultural deployment. Annual production is estimated at 6-9 million tons, supported by 25-40 controlled production facilities, often integrated with nitric acid plants. Manufacturing capacity is around 10-12 million tons per year, while exports are limited at 0.8-1.5 million tons, primarily industrial-grade materials under strict regulation.
• Ammonium sulfate in China is largely a byproduct of caprolactam, coal chemical and steel industries, making it one of the most widely available nitrogen fertilizers. Annual production is estimated at 18-25 million tons, supported by 60-90 production facilities. Installed capacity is around 28-35 million tons per year, with exports of 6-10 million tons annually, mainly to Southeast Asia and South America. Imports are minimal at 0.3-0.8 million tons.

China Nitrogenous Fertilizer Market By Form • Solid nitrogen fertilizers in China account for approximately 85-105 million tons annually, driven by urea, ammonium sulfate, and CAN type products distributed across vast inland farming regions. The country operates around 18,000-25,000 rural distribution centers and agro dealer outlets, reflecting highly fragmented last mile logistics. Bulk handling infrastructure includes approximately 600-900 fertilizer terminals, with 120-180 major port linked export/import hubs concentrated in Qingdao, Tianjin, Lianyungang, and coastal chemical zones.
• Liquid nitrogen fertilizers in China are expanding rapidly due to precision agriculture adoption and large-scale farming reforms. Annual liquid fertilizer movement is estimated at 35-55 million tons, driven mainly by UAN solutions and liquid compound blends. China operates approximately 6,000-10,000 liquid storage and distribution facilities, including 1,500-2,500 dedicated liquid fertilizer terminals and tank farms, heavily concentrated in grain producing provinces and coastal chemical zones.

China Nitrogenous Fertilizer Market By Crop Type • Oilseeds and pulses in China are dominated by soybean, rapeseed, peanut, and minor pulses, with production concentrated in Heilongjiang, Inner Mongolia, and the Yangtze River Basin. Total cultivated area is approximately 28-38 million hectares, with harvested area of 26-36 million hectares annually, supported by both single and double cropping systems. Annual production volume is estimated at 65-85 million tons, with soybean and rapeseed forming the majority share. Nitrogen application rates range from 80-180 kg N/hectare for oilseeds and 20-70 kg N/hectare for pulses due to nitrogen fixation benefits.
• Cereals and grains dominate China’s agricultural system, including rice, wheat, corn, and millet, across major basins such as the North China Plain and Northeast China. Total cultivated area is approximately 95-115 million hectares, with harvested area of 90-110 million hectares annually, often supported by multiple cropping systems in southern regions. Annual production volume is around 650-750 million tons, with rice and maize contributing the largest shares. Nitrogen application rates range from 180-300 kg N/hectare for rice, 150-260 kg N/hectare for wheat, and 200-320 kg N/hectare for maize systems.

China Nitrogenous Fertilizer Market By Application • Soil application remains the dominant nitrogen fertilizer delivery method in China, particularly for rice, wheat, maize, and cotton cultivation. Annual fertilizer application volume through soil-based methods is estimated at 55-75 million tons, covering approximately 100-125 million hectares of agricultural land. Around 170-220 million agricultural holdings utilize soil fertilization, with farmers typically conducting 2-5 application events per crop season depending on crop type and region.
• Fertigation is one of the fastest growing nitrogen application methods in China, particularly in greenhouse vegetables, orchards, vineyards, and water efficient irrigation systems. Irrigated farmland utilizing fertigation is estimated at 18-28 million hectares, supported by approximately 6-10 million fertigation installations, including drip and micro-irrigation systems. China operates liquid fertilizer storage infrastructure with an estimated capacity of 8-15 million tons, while annual nutrient delivery through fertigation systems reaches approximately 8-12 million tons of nitrogen nutrients.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
•Nitrogenous Fertilizers Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By product Type
• Urea
• Ammonium Nitrate
• Ammonium Sulfate
• Calcium Ammonium Nitrate (CAN)
• Others(UAN (Urea Ammonium Nitrate Solutions), Ammonia (Anhydrous Ammonia), Methylene Urea)

By Form
• Solid (Granular / Prilled)
• Liquid
• Gas (Anhydrous Ammonia)

By Crop Type
• Oilseeds and Pulses
• Cereals and Grains
• Fruits and Vegetables
• Others

By Application
• Soil
• Foliar
• Fertigation
• Others