# Industry | the state strictly controls the new production capacity of urea and ammonium phosphate. Listen to the voices in the industry. 11/01 Update MySheen

> China's State Council issued guidance on restructuring the petrochemical industry, calling for elimination of excess capacity and tighter control over new production capacity. The measures specifically cover urea and ammonium phosphate.

- Date: 2026-11-01 · published 2026-11-01T06:15:38.185Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/4540-industry-the-state-strictly-controls-the-new-production-capacity-of-urea-and
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md), [DAP](https://feedsoft.ai/c/DAP.md)

## Why it matters

Limiting new urea and ammonium phosphate capacity constrains future supply growth in a major exporting country, which supports fertilizer prices.

## Read by commodity

- DAP: bullish ▲
- UREA: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2025-04-07 | [New Tariffs Drive Urea Price Surge as Phosphate, Potash Strengthen \| CZ app](https://feedsoft.ai/events/25025-new-tariffs-drive-urea-price-surge-as-phosphate-potash-strengthen-cz-app.md) | +0.8% | +19.5% |
| UREA | 2025-05-11 | [China Confirms Export Controls on MAP, DAP, and Urea: What Global Buyers Need to Know](https://feedsoft.ai/events/24595-china-confirms-export-controls-on-map-dap-and-urea-what-global-buyers-need-to.md) | -0.4% | -23.4% |
| UREA | 2023-11-17 | [Urea Sector Update - Marginally higher urea price outlook in 2024 - Vietcap](https://feedsoft.ai/events/33475-urea-sector-update-marginally-higher-urea-price-outlook-in-2024-vietcap.md) | +0.7% | -8.2% |
| UREA | 2021-11-15 | [Soaring fertilizer prices add to inflationary pressures and food security concerns](https://feedsoft.ai/events/12681-soaring-fertilizer-prices-add-to-inflationary-pressures-and-food-security.md) | -0.6% | -1.8% |
| UREA | 2024-04-27 | [Order of the Government of the Russian Federation "About Introduction of Temporary Quantitative Restriction on Export of Separate Types of Fertilizers"](https://feedsoft.ai/events/30658-order-of-the-government-of-the-russian-federation-about-introduction-of.md) | -7.7% | -6.1% |
| DAP | 2022-04-09 | [Upstream limit new production capacity phosphate rock or accelerate price increase in line with international prices - Shanghai Metals Market (SMM)](https://feedsoft.ai/events/42169-upstream-limit-new-production-capacity-phosphate-rock-or-accelerate-price.md) | 0.0% | -9.5% |
| DAP | 2022-03-23 | [Diammonium Phosphate Prices Growing Twice in the US as Russia Implies Export Restrictions](https://feedsoft.ai/events/42572-diammonium-phosphate-prices-growing-twice-in-the-us-as-russia-implies-export.md) | -1.5% | -3.6% |
| DAP | 2021-10-01 | [China expected to stop phosphate exports,  food production prices set to rise - ABC News](https://feedsoft.ai/events/4698-china-expected-to-stop-phosphate-exports-food-production-prices-set-to-rise-abc.md) | +4.6% | +4.6% |

## Sources

- mysheen.com: https://www.mysheen.com/a872599

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.