Nitrogen (ammonia): Overview
Why nearly all ammonia ends up feeding crops
What this tab covers What the commodity is used for, why, in what volumes and with what alternatives, and its chain from mine or field to end user. Also the latest price moves, top recent news, three things to know, and buttons into each tab.Key uses
| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| Urea (mostly fertiliser, plus resins and diesel exhaust fluid) | 60% | about 114 Mt of ammonia a yearbasis | Urea is 46% nitrogen, the highest of any solid fertiliser, so it is the cheapest to ship, store and spread per unit of N. It is a dry granule that moves in bulk carriers, unlike ammonia, which must be chilled or pressurised. In India it is also the most subsidised nutrient, sold at a fixed retail price. IFA via DTN (Dec 2025); stoichiometric conversion | Ammonium nitrate or CAN (Europe) UAN solution (US) Direct-injected anhydrous ammonia (US Corn Belt) Legume rotations and manure |
| Other nitrogen fertilisers: ammonium phosphates (DAP/MAP), ammonium nitrate and CAN, UAN, ammonium sulphate, direct-applied ammonia | n/a | most of the remaining fertiliser use; not separately quantifiedbasis | Each form fits a crop, soil or climate. DAP delivers phosphorus and nitrogen together, which is why Morocco and India import ammonia. Nitrates act fast and lose less N to air, which suits European cereals. Ammonium sulphate adds sulphur for oilseeds. IEA Ammonia Technology Roadmap (2021); Comtrade 2024 (Morocco 21.0% of ammonia imports) | Urea Organic manures Biological fixation by legumes |
| Industrial chemicals: nitric acid, caprolactam and adipic acid (nylon), acrylonitrile (acrylic fibre, ABS), MDI/TDI (polyurethanes), amines, refrigeration | 30% | about 57 Mt of ammonia a yearbasis | Ammonia is the cheapest source of reactive nitrogen for chemistry. Any molecule with nitrogen in it, from nylon to polyurethane foam, traces back to Haber-Bosch ammonia. Plants sit next to ammonia units or buy merchant ammonia by pipeline or ship. IEA Ammonia Technology Roadmap (2021); IFA via DTN (Dec 2025) | Few: some routes swap feedstocks, but no non-ammonia source of fixed nitrogen exists at scale |
| Explosives for mining and quarrying (ammonium nitrate, ANFO, emulsions) | n/a | part of the 30% industrial share; not separately quantifiedbasis | Ammonium nitrate mixed with fuel oil is the cheapest bulk blasting agent. Coal, iron ore and copper mines use it by the tonne. USGS says no practical substitutes for nitrogen explosives are known. USGS MCS 2026, Nitrogen; IEA (2021) | None practical at scale (USGS) |
| Emerging: ammonia as a hydrogen carrier, shipping fuel and co-firing fuel in power plants | n/a | negligible todaybasis | Ammonia carries hydrogen at liquid density and already has ports, ships and safety codes. Japan's JERA and Mitsui have joined CF Industries' Blue Point low-carbon ammonia plant in Louisiana, aimed partly at fuel use. CF Industries 2025 results (Feb 2026) | Liquefied hydrogen Methanol LNG |
From mine to user
- Gas or coal supply Natural gas supplies both hydrogen and heat; about 33 MMBtu of gas makes 1 t of ammonia (USDA ERS). China mostly uses coal.
- Reforming or gasification to hydrogen Steam reforming splits methane into hydrogen and CO2. Coal plants gasify coal to syngas.
- Haber-Bosch ammonia synthesis Hydrogen and nitrogen from air react at high pressure and temperature. World output was 190.5 Mt of ammonia in 2024 (IFA).
- Upgrading to urea, nitrates, UAN or phosphates Urea plants combine ammonia with the CO2 from reforming. One tonne of urea takes about 0.57 t of ammonia.
- Storage and shipping Urea moves as dry bulk; ammonia moves chilled to -33 C in gas carriers. About 40% of seaborne urea passes the Strait of Hormuz (Kpler; farmdoc daily, 2026).
- Import tenders and distribution India's state agencies buy by tender; in India urea sells at a fixed retail price of Rs 242 per 45 kg bag, excluding neem coating and taxes (Lok Sabha answer, Dec 2024), and the government pays the rest.
- Application to crops Farmers spread or inject N mainly on cereals, timed before planting and during early growth.
Price movement snapshot 2026-10-25
Urea (World Bank monthly) 408 $/mt Month 2026-09 1 week no daily price 6 months -43.8%Three things to know
- China produced about 49 of the world's 160 million tons of ammonia nitrogen in 2025 (USGS).
- Only about 2% of world natural gas output goes to fertiliser, yet nearly half of humanity depends on it (Conway).
- US Gulf ammonia averaged $1,070 per short ton in 2022, then $450 in 2025 (USGS).
Top recent news snapshot 2026-10-25, last 30 days
- Urea import prices hit 15-month low, but fertiliser subsidy burden may rise marginally due to higher DAPThe Times of India · 2026-10-20
- India Urea Offers Fall in Sign of Easing Global Fertilizer CostsBloomberg.com · 2026-10-08
- EXCLUSIVE: France's urea supply from Algeria under threat as diplomatic tensions persist, sources sayReuters · 2026-10-23
- UN official warns of looming food crisis as Hormuz fertiliser plan stallsAl Jazeera · 2026-10-14
- India to meet 90% of its domestic urea demand by 2030 to improve food securityLivemint · 2026-10-14