China has halted exports of urea once again after two months due to domestic fertilizer supply issues.
However, as South Korea diversifies its urea import, the domestic impact is expected to be limited.
On June 18, The Ministry of Strategy and Finance announced, “On the 7th, the government became aware that the export clearance of urea from China is being delayed. We have been holding joint review meetings with related ministries and urea-related companies to check the related trends and to discuss countermeasures.”
According to the Chinese Chemical Fertilizer Network, industry analyst Tan Jiaying uploaded a post on the 15th, stating, “Exports of urea have been temporarily suspended. With the added pressure on domestic market supply and policies in place to ensure supply security and price stability, it is unlikely that the export issue will be resolved in the short term.”
China previously halted urea exports in 2021, causing a domestic supply crisis.
However, it is projected that there will be no significant disruption in the domestic urea supply. After China’s export restrictions last year, South Korea diversified its import sources to countries like Vietnam and Qatar. As a result, the proportion of imports from China dropped to 13% from January to May. The largest share of industrial and vehicle fertilizer imports from January to May was from Vietnam at 63%.
A government official stated, “Considering that we currently have more than three months worth of vehicle urea secured from both companies and public reserves, the domestic impact of China’s export restrictions will be limited. The government will continue to monitor the domestic vehicle urea supply situation and trends in urea imports from third countries while discussing smooth import measures with the Chinese government. We will support to ensure that urea imports and distribution proceed without any problems.”
