Government: "No Export Control Measures on Chinese Element... No Domestic Supply Issues"

The government responded to foreign reports about China's suspension of fertilizer-grade urea exports by stating, "The Chinese government has not taken any official export control measures on fertilizer-grade urea," and added, "Even if controls occur, there will be no problems with domestic supply and demand."

China has restricted the export of urea, a raw material essential for diesel vehicles' urea solution, leading to an expected decrease in urea solution production. On the 29th, urea solution was being sold at a gas station in Seodaemun-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Kang Jong-seok, Deputy Director of the Economic Security Supply Chain Planning Division at the Ministry of Economy and Finance, said at a press briefing held at the government Sejong Complex on the 8th, "After confirmation through the embassy in China and other diplomatic authorities, the Chinese government has not officially implemented export control measures on fertilizer-grade urea."

He continued, "Fertilizer-grade urea imports are being diversified, and with a downward stabilization trend in prices, there are no supply issues." As of July this year, the share of fertilizer-grade urea imports from China is 17%. Middle Eastern countries account for a significant portion, with Qatar at 41% and Saudi Arabia at 10%. It is also assessed that the prices of fertilizer-grade urea for domestic companies have continued a downward stabilization trend since 2021.

The government expects that there will be no broad export restrictions by the Chinese government that could affect the supply of automotive urea solution. Deputy Director Kang stated, "Through the Korea-China summit and other meetings, both sides agreed to respect an international order based on rules," adding, "There is a consensus between the two countries to maintain supply chain stability, and working-level teams have established systems such as director-level meetings for this purpose, so we do not anticipate any additional measures."