The latest news on China's urea export policy restrictions. May 11,2025

China Nitrogen Fertilizer Industry Association (CNFIA)
Initiative on Strengthening Industry Self-Discipline and Prioritizing Farmer Benefits
May 11, 2025

Since April 30, the nitrogen fertilizer industry has been working to establish a self-discipline mechanism for urea exports, enhancing industry-wide self-regulation to ensure orderly and healthy urea exports. Meanwhile, key enterprises are urged to heed the association’s call to shoulder responsibilities in stabilizing domestic supply and prices, refraining from exploiting the domestic market with price hikes that undermine the favorable policy environment for industry development. All enterprises must collaborate to create conditions conducive to the healthy and sustainable growth of the nitrogen fertilizer sector.

Recent irrational speculation, driven by information asymmetry and outdated perceptions that exports inevitably drive domestic price surges, has led to sharp increases in urea futures and spot prices. Such volatility conflicts with the overarching goals of ensuring fertilizer supply stability and supporting China’s agricultural production, as well as contravenes the original intent of establishing a urea export self-discipline mechanism. To stabilize market expectations and promote the steady operation of the domestic fertilizer market, the China Nitrogen Fertilizer Industry Association (CNFIA) hereby issues the following initiatives to all industry enterprises:

I. Key Nitrogen Fertilizer Enterprises Must Proactively Pass Benefits to Farmers
Enterprises shall adjust urea ex-factory prices within three days to pre-May 6th levels (no more than RMB 100 per ton higher than late April prices). Any enterprise that violates this self-discipline initiative, thereby destabilizing the hard-won favorable policy environment, will face suspension of membership privileges and bear corresponding policy consequences.

II. Strengthen Industry Self-Discipline for Orderly and Healthy Urea Exports
Enterprises must resolutely avoid “internal competition” (neijuan) to undercut prices and scramble for international market share. Such practices will not be recognized by the association. Collective efforts are essential to achieve sustainable and healthy development of the nitrogen fertilizer industry.

China Nitrogen Fertilizer Industry Association (CNFIA)
May 11, 2025