When it comes to the fertilizer sector, the Asia-Pacific region is home to some of the biggest players in the world. Regardless of whether they are producers, importers or consumers, and it seemingly does not matter if you are discussing phosphorous or urea, you will almost always discuss China and India. This article provides a comprehensive overview of how integral the Asia-Pacific region is to the fertilizer industry, as well as highlight some of the nuances that can influence not only the regional, but global markets.
UreaThe Asia-Pacific region is home to the two largest consumers and producers of urea: China and India. Accounting for a combined 50% in 2023 in both respects, not only are China and India influential to the region, but they also shape wider global market sentiment. The shifting landscape of these markets in recent years, as both pursue policies intended to foster self-sufficiency, has naturally garnered worldwide interest.
The ever-evolving policies that play a key role in China’s nitrogen industry have always influenced the extent to which Chinese volumes are present in the seaborne urea market. From the use of subventions for coal-to-urea capacity buildouts that resulted in exports peaking at 13.7 million t in 2015, to the swift collapse to 2.5 million t in 2018 as subsidies were withdrawn and a clampdown on air pollution instilled, and later a drive for zero growth in nitrogen fertilizer consumption that made export volumes stabilise at roughly 5 million t.
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