Urea futures were recently approved to be traded at Zhengzhou Commodity Exchange. This is to help the urea industry avoid market risks, stabilize the profitability, optimize pricing model and upgrade industrial structure. In addition, product quality, warehousing and logistics levels are all to be improved. While reducing risks, urea futures are to help farmers calculate planting costs in advance and protect their gains.

The government is gradually cancelling urea related preferential/restrictive policies, and takes no price control measures in the urea market. Urea varieties are characterized by large scale in spot goods, high degree of standardization, convenient storage & transport, etc.