China Uses Coal to Shield Farmers from Fertilizer Turmoil
China uses coal to produce urea, keeping domestic prices low despite global surges. Beijing may limit exports to ensure stable supply for local farmers.
While farmers across the globe struggle with supply disruptions caused by the conflict in Iran, agricultural producers in China are benefiting from the nation's strategic reliance on coal for fertiliser production. This unique energy mix has insulated the domestic market from the volatility currently affecting global supply chains.
Unlike other major urea exporters such as Russia, Qatar, and Saudi Arabia, which primarily use Natural Gas as a feedstock, approximately 78% of Chinese urea output is coal-based. This reliance on an abundant domestic resource has allowed the country to maintain stable production levels while international prices soar.
