Government: "Significant Part of Surging Demand for Urea Solution Resolved... Market Stabilizing Rapidly"

"Purchase Demand That Exceeded Required Amount Is Gradually Decreasing"

Lee Ok-won, First Vice Minister of the Ministry of Economy and Finance, presides over and speaks at the "2nd Meeting of the Economic Security Core Items Task Force (TF)" at the Government Seoul Office Building on the 1st. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] The government evaluated on the 1st that "the urea water distribution market is rapidly stabilizing" as speculative demand decreases due to expectations of stable supply of urea water.

On the same day, the government held the 22nd inter-ministerial joint response meeting on urea water supply, chaired by Lee Eokwon, the 1st Vice Minister of Strategy and Finance, at the Government Complex Seoul, and stated, "The speculative demand for urea water that occurred in the middle of last month is largely being resolved." There had been demand to purchase more urea water than immediately needed due to concerns about shortages and price increases, but as the import and production of urea and urea water stabilize, such concerns are also decreasing.

The sales volume of urea water at key distribution gas stations decreased from 395,000 liters on the 16th of last month and 388,000 liters on the 17th to 172,000 liters on the 22nd, 224,000 liters on the 23rd, 175,000 liters on the 29th, and 233,000 liters on the 30th. Domestic urea water production volumes exceeded the daily consumption of 600,000 liters, with 1.17 million liters on the 24th, 1.35 million liters on the 25th, 1.19 million liters on the 26th, 830,000 liters on the 27th, and 850,000 liters on the 29th. Imports of automotive urea and urea water from China, Vietnam, Japan, and others are also proceeding without disruption.

The government stated, "Company L, which accounts for more than 50% of domestic urea water production, has secured enough automotive urea to produce for more than four months and plans to operate production processes at maximum capacity to produce about 500,000 liters of urea water per day." They are also considering exchanging surplus urea from some producers with companies experiencing shortages if necessary. Finished urea water products are scheduled to be imported at 1.48 million liters on the day and 3 million liters on the 8th.

The government designated three additional key distribution gas stations the day before, bringing the total to 130. In addition, they are considering disclosing the urea water inventory of about 2,000 gas stations, including budget gas stations and major producers' distribution network stations, through T map, NAVER, KakaoMap, and others.