China halts urea exports to Korea, limited impact expected
China has halted customs procedures for urea exports to Korea, but the impact this time will likely be limited due to a lower dependence than before. The Ministry of Trade, Industry and Energy and other related agencies said Tuesday that some Chinese suppliers of the compound used to curb emissions in diesel cars and make agricultural fertilizer have temporarily suspended outbound shipments since earlier this month to prioritize supply for domestic use following a price surge.
"The government first learned of the delay in Chinese customs on June 7 and has been discussing responses with concerned ministries and relevant companies," the ministry said in a release.
"We are able to flexibly respond to the export controls as Korean companies have imported an ample volume through various channels and the proportion of urea from China remained low," it added.
The development has raised concerns about a recurrence of major disruptions to urea supplies in Korea as seen in 2021 following China's export controls.
Since the supply crunch, Korea has been working hard to reduce its dependence on China for the material as well as other major industrial products.
Chinese urea accounted for 83.4 percent of Korea's total imports in 2021 but fell sharply to 13 percent during the first five months of 2024.
During the January-May period, around 63 percent of urea exports came from Vietnam, while shipments from Qatar came to 12 percent, according to government data.
"Currently, we have a urea inventory sufficient for three months, and the latest export restrictions are expected to have a limited impact," the ministry said.
"The government will continue to monitor the supply and demand situation and imports from third countries. We will also have consultations with China to ensure a stable supply."
BY PARK EUN-JEE, YONHAP [park.eunjee@joongang.co.kr]
Kaynak: Evrim
