China to continue dominance of global ammonia supply

13 February 2026
The country is forecast to account for about one-third of global ammonia production by 2030

China is set to maintain its dominance in global ammonia supply through 2030, supported by strong agricultural and industrial demand.

The country’s extensive fertiliser requirements, broad manufacturing base and access to relatively low-cost feedstock are expected to reinforce its position as both the world’s largest producer and consumer of ammonia, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, ‘Global Ammonia Market: Key Projects and Capacity Additions, 2026’, reveals that China is expected to account for about one-third of global ammonia production by 2030

Nivedita Roy, oil and gas analyst at GlobalData, comments: “As the world’s largest consumer of nitrogen fertilisers, China relies heavily on ammonia as the key building block for products such as urea and ammonium phosphate, which support crop yields and national food security. With rising pressure to maintain stable harvests amid limited arable land in the country, demand for ammonia-based fertilisers is expected to remain robust through the end of the decade.”

Beyond agriculture, ammonia demand in China is also supported by a wide range of industrial uses. It is an essential input for producing chemicals such as nitric acid, which is used in making plastics, dyes and other manufacturing materials. Ammonia is also used in emissions-control systems at power plants and factories, helping reduce nitrogen oxide (NOx) pollution.

China’s large industrial base strengthens the case for continued high ammonia output. With major sectors such as steel, textiles, electronics and construction relying on chemical intermediates, steady ammonia supply supports broader manufacturing activity.

Roy concludes: “Cost competitiveness further strengthens China’s supply outlook. Access to relatively low-cost, domestically available feedstock – especially coal in many regions – helps keep production costs down in a process where energy and raw materials make up a large share of expenses. This advantage allows Chinese producers to sustain high output even when global energy prices fluctuate.” 

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.