# Urea Cost Curve Steepens: What It Means for CF Industries

> Urea prices have fallen sharply over the past five years, largely because of lower energy costs. The global urea cost curve has now steepened since 2Q16 as Chinese coal prices rose and government subsidies fell. Chinese producers' average urea operating rate dropped to about 50%.

- Date: 2017-03-22 · published 2017-03-22T12:00:00.000Z
- Category: market · region China · magnitude low
- Page: https://feedsoft.ai/events/72314-urea-cost-curve-steepens-what-it-means-for-cf-industries
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

China is the marginal urea producer, so its higher coal-based production costs lift the global price floor. Low-cost gas producers such as CF Industries may gain relative to coal-based rivals.

## Read by commodity

- UREA: bullish ▲

## Sources

- marketrealist.com: https://marketrealist.com/2017/03/urea-cost-curve-steepens-means-cf-industries/

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