# Understanding the Chinese cost floor - CRU Group

> CRU Group publishes an analysis of the Chinese fertilizer cost floor, explaining how Chinese producers' costs shape global prices. The piece highlights China's growing dominance as the largest producer of DAP, MAP and urea. It also notes that policy and food security have shaped the industry.

- Date: 2020-06-04 · published 2020-06-04T12:00:00.000Z
- Category: report · region China · magnitude low
- Page: https://feedsoft.ai/events/52923-understanding-the-chinese-cost-floor-cru-group
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md), [DAP](https://feedsoft.ai/c/DAP.md)

## Why it matters

Chinese production costs set a practical floor for global urea and phosphate prices, so understanding this floor helps buyers anticipate fertilizer price support levels.

## Read by commodity

- DAP: neutral
- UREA: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2020-06-15 | [CRU Fertilizers Top 10 calls for 2020 Mid-year review - CRU Group](https://feedsoft.ai/events/52543-cru-fertilizers-top-10-calls-for-2020-mid-year-review-cru-group.md) | +0.8% | +8.1% |
| UREA | 2025-01-24 | [CRU’s top fertilizer calls for 2025 - BC Insight](https://feedsoft.ai/events/26437-cru-s-top-fertilizer-calls-for-2025-bc-insight.md) | +1.5% | +12.7% |
| UREA | 2020-08-20 | [1H results show ferts producers are yet to feel the impact from COVID-19](https://feedsoft.ai/events/51922-1h-results-show-ferts-producers-are-yet-to-feel-the-impact-from-covid-19.md) | -0.2% | -5.6% |
| UREA | 2022-09-27 | [Fertilizer Prices, Rates, and Costs for 2023 - farmdoc daily](https://feedsoft.ai/events/11906-fertilizer-prices-rates-and-costs-for-2023-farmdoc-daily.md) | -5.7% | -9.1% |
| UREA | 2023-01-06 | [2023 fertilizer outlook provided – Wyoming Livestock Roundup](https://feedsoft.ai/events/10451-2023-fertilizer-outlook-provided-wyoming-livestock-roundup.md) | -3.6% | -17.8% |
| DAP | 2020-01-20 | [NPK Price - CRU Group](https://feedsoft.ai/events/55014-npk-price-cru-group.md) | +0.7% | +9.3% |
| DAP | 2020-06-15 | [CRU Fertilizers Top 10 calls for 2020 Mid-year review - CRU Group](https://feedsoft.ai/events/52543-cru-fertilizers-top-10-calls-for-2020-mid-year-review-cru-group.md) | 0.0% | +11.3% |
| DAP | 2025-09-01 | [Morocco’s phosphate sector powers ahead with strong growth in production and exports - The Morocco Post](https://feedsoft.ai/events/23219-morocco-s-phosphate-sector-powers-ahead-with-strong-growth-in-production-and.md) | -0.6% | -3.8% |

## Sources

- crugroup.com: https://www.crugroup.com/en/communities/thought-leadership/2020/understanding-the-chinese-cost-floor-1/

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