South Korea’s finance ministry said Friday it has confirmed that China has not implemented an official ban on shipments of urea by fertilizer firms and noted that the domestic supply would remain stable even if there were any curbs.
“Through our diplomatic channels, including the embassy in China, we have found out that there is no official ban on exports of urea for fertilizer by the Chinese government,” a Ministry of Economy and Finance official said.
The remark came after media reports that Beijing has requested that Chinese fertilizer firms suspend outbound shipments of urea.
“Currently, one Chinese chemical fertilizer firm has announced a plan to reduce its export volume,” the official said. “As the relationship with China remains stable, we do not anticipate a comprehensive export ban as observed in the past.”
The finance ministry added that the domestic supply of urea for fertilizer will remain stable even if an export curb is implemented.
“Imports of urea for fertilizer are diversified, and the price is stabilizing,” the official said. “There will be no problem with the future supply.”
Over the January-July period, Qatar accounted for 41 percent of South Korea’s imports of urea for fertilizer, followed by Saudi Arabia with 10 percent.
Imports from China, which took up 65 percent in 2021, came to just 17 percent in the period, the finance ministry said.
The combined domestic demand for urea for fertilizer is estimated at 386,000 tons, with South Korea already securing 77.4 percent of the volume as of the first week of September, it added.
The agriculture ministry said the global price of urea has been stabilizing after experiencing a sharp hike in 2021, and South Korea has been successful in diversifying its sources.
“Even if China implements an export curb on urea, it is expected to have only a limited impact on the supply of fertilizer in the local market,” the Ministry of Agriculture, Food and Rural Affairs said in a statement.
The current reserve is estimated to be enough to maintain a stable supply through January, it added.
“The government and related organizations will work closely to monitor the situation in China and keep a watchful eye on the supply of urea in the market,” the ministry added.
Source: Yonhap News Agency