China is set to export 1.2 million tonnes of urea to India, a major shift in global nitrogen fertiliser flows following Beijing's decision to widen its annual export quota to 5.5 million tonnes. The move comes as urea prices have fallen sharply, down 58% from April's peak of $935 per tonne, reflecting a rapid loosening of a market that had been tight for months.
The earlier tightness stemmed largely from disruption linked to the Strait of Hormuz, which had constrained nitrogen supply chains and kept prices elevated through the spring. China's decision to release additional export volumes reverses that dynamic, giving India and other importers access to cheaper material and easing pressure on global urea benchmarks.
For buyers, the shift signals an opportunity to secure urea at significantly lower cost than earlier in the year, particularly for India's state-backed import programmes which rely heavily on competitively priced Chinese supply. Producers and traders holding inventory bought at higher spring prices may face margin pressure as the market resets lower.
Related on gidex.com: urea supply · the fertiliser desk · buying through the desk
Original note by GIDEX Group based on reporting by Fertilizer Daily. Written up by the GIDEX market desk — see how these notes are made. Not investment advice.
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