In the first half of this year, China's fertilizer exports saw a significant rise in volume, with 4.766 million tons shipped, marking a 30.7% increase compared to the same period last year. The total export value reached $1.54 billion, up 10.5%, while the average export price dropped slightly to $329.1 per ton, down 15.4%. On the import side, China brought in 4.656 million tons of chemical fertilizers, a 1.5% decrease, with an import value of $2.01 billion, down 11.3%. The average import price was $431.5 per ton, reflecting a 9.9% decline.
One of the key trends in the first half was the fluctuation in monthly trade volumes. In June, both exports and imports declined year-on-year. Export volume for the month was 965,000 tons, a 3.8% drop from the previous year but a 19% increase from May. Meanwhile, the average export price fell by 1.8% year-on-year, though it rose by 15.3% month-on-month. On the import side, June saw a sharp drop after reaching a high of 1.128 million tons in April—its highest level since April 2007. By June, imports had fallen to 50.5 million tons, a 42.9% year-on-year decline, marking the lowest level in six months. The average import price rebounded slightly, rising to $439.6 per ton in June, a 7.9% drop year-on-year but a 0.9% increase from May.
Most of the trade occurred through general trade channels. In the first half, 3.709 million tons were exported via general trade, up 24.9%, accounting for 79.3% of total exports. Another 861,000 tons were exported through other channels, up 90.8%. For imports, 3.318 million tons came through general trade, up 3.1%, representing 71.3% of total imports. Imports through border trade increased by 4.2%, while those under special supervision fell by 39.6%.
China’s main export destinations were ASEAN, India, and Brazil, with 1.674 million tons, 719,000 tons, and 472,000 tons respectively, showing growth of 6.6%, 33.3%, and 43.2%. These three markets accounted for 61.3% of total exports. On the import side, Russia remained the largest supplier with 1.577 million tons, down 27.5%, followed by Canada and Belarus with 1.064 million tons and 578,000 tons, increasing by 53.8% and 86.9% respectively. Together, these three countries accounted for 69.1% of total imports.
Ammonium sulfate and urea were the leading export products, while potassium chloride dominated imports. Ammonium sulfate exports reached 1.378 million tons, up 44.9%, and urea exports hit 1.359 million tons, tripling compared to the previous year. Together, they made up 57.5% of total exports. Potassium chloride imports totaled 3.634 million tons, up 0.2%, accounting for 78.1% of all imports. Compound fertilizers saw a slight decline, with 692,000 tons imported, down 1.2%.
The drop in fertilizer imports can be attributed to several factors. First, domestic demand remained weak, while production continued to grow, creating a surplus. According to the National Development and Reform Commission, output from January to May reached 32.9 million tons, with nitrogen and phosphate fertilizer production up 9.3% and 5.8% respectively. Excess supply forced companies to seek international markets. Second, ammonium sulfate exports surged due to its environmental benefits and zero-tariff status, with production exceeding 5 million tons this year. Finally, increased domestic potash production and high inventory levels reduced the need for imports.
Domestic and international fertilizer prices have been declining, raising concerns about China’s pricing power. International urea prices fell significantly, with FOB prices dropping from around $420 per ton to below $300, impacting domestic prices as well. This has led to lower profit margins and increased pressure on producers. Additionally, global overcapacity in nitrogen and phosphate fertilizers is intensifying competition, particularly in markets like India where Chinese exports face strong rivals from the Middle East and North Africa.
Lastly, low fertilizer utilization rates in China pose challenges for sustainable agriculture. Overuse has led to pollution, with agricultural sources contributing heavily to national nitrogen and phosphorus emissions. Addressing this issue is crucial for long-term food security and environmental protection.
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