On Friday, the South Korean finance ministry announced it had verified there was no imposed ban on the export of urea by Chinese fertilizer companies. A representative from the Ministry of Economy and Finance commented that through diplomatic channels, including the embassy in China, it was determined there was no official restriction on the outbound shipments of urea.
The statement was made in response to media reports that China had requested Chinese fertilizer firms to put a halt to urea exports. Although one Chinese chemical fertilizer business revealed plans to reduce its export volume, the official said the relationship between the two countries was stable, and therefore, it was not anticipated a full-scale export ban would be implemented, like in the past.
The Ministry of Economy and Finance also noted the domestic supply of urea for fertilizer would remain consistent even if an export limitation was enforced. From January to July, Qatar accounted for 41 percent of South Korea’s imports of urea for fertilizer, followed by Saudi Arabia with 10 percent, while imports from China, which took up 65 percent in 2021, were only 17 percent in the same period.
The Ministry of Agriculture, Food and Rural Affairs declared the global price of urea had been stabilizing after a significant increase in 2021, and South Korea had been successful in diversifying its sources. The current reserve was estimated to be sufficient to sustain a stable supply through January.
The government and related organizations will collaborate to monitor the situation in China and keep an eye on the supply of urea in the market, the ministry added.