China’s urea exports, a key fertilizer and emissions-reducing chemical, soared by over 600% in July 2025 compared to the previous year, signaling a relaxation of export controls imposed in 2024 to stabilize domestic prices and ensure food security. The surge, driven by increased shipments to Latin America and Asia, reflects unused export quotas and potential resumption of trade with India, though domestic supply remains a priority.

China exported 567,184 tonnes of urea in July 2025, a 614% increase from July 2024 and a 7.6-fold rise from June 2025’s 66,241 tonnes, according to customs data released on August 20, 2025. Urea, a nitrogen-based chemical used in agriculture and to reduce diesel and industrial emissions, saw minimal exports—averaging 2,200 tonnes monthly—from January to May 2025 due to restrictions enacted in June 2024. The recent spike suggests Beijing has eased these curbs, though exports remain guided by government quotas and price controls.

Analysts attribute the surge to a low base in 2024 caused by the export ban, with inspections resuming in May 2025 before quotas were issued. Xu Xiaoyun, an analyst at JLC Network Technology, stated, “Urea exports in June and July were conducted under government guidance, with quota limits and price controls, rather than being fully opened.” Customs data shows export destinations expanded from 13 countries in June to 31 in July, with Chile, Mexico, Sri Lanka, New Zealand, and South Korea accounting for 65.7% of July shipments. South Korea, in particular, relies on Chinese urea for vehicle emissions reduction.

Despite the increase, exports from May to July totaled 635,861 tonnes, well below the 3 million tonnes allocated in two quota batches, according to Guo Shuhua, an analyst at OilChem. This leaves room for further exports in August and September, traditionally peak months due to seasonal demand in the southern hemisphere. Xu noted that southern hemisphere demand strengthens in the second half of the year but remains lower than northern hemisphere demand.

Reports indicate China may resume urea exports to India in August or September, following a pause in July, as a sign of improving relations amid shared pressures from U.S. trade policies. However, Xu cautioned that volumes to India would likely remain limited to prioritize domestic supply and price stability.

Both perspectives—government-controlled export expansion and prioritization of domestic needs—highlight China’s balancing act. The easing of restrictions supports global agricultural and emissions-reduction efforts, particularly in countries like South Korea and those in Latin America, while maintaining focus on food security at home.