2023-12-03 13:26:30
As Chinese customs has recently blocked the export of automotive urea to Korea, there are concerns that another urea crisis might occur in 2021. The government plans to communicate closely with the Chinese side and secure domestic demand without disruption.
According to the relevant ministries on the 3rd, related ministries such as the Ministry of Strategy and Finance, the Ministry of Trade, Industry and Energy, the Ministry of Foreign Affairs, and the Ministry of Environment learned from companies that customs clearance for export of vehicle elements from China was delayed and held an inspection meeting of the relevant ministries on the 1st.
The government is communicating with China through diplomatic channels. The Chinese side is said to have stated that it has never taken any official action regarding restrictions on urea exports. Accordingly, the government is requesting that the quantity of urea blocked at customs be released.
Korea relies mostly on China, the world’s largest producer, for urea imports. According to the Korea Customs Service, as of October this year, the proportion of Chinese urea imports was 91%. This is because the company failed to diversify its supply chain despite experiencing a urea crisis two years ago due to the price competitiveness of Chinese urea.
As a result, concerns are growing that a urea crisis might occur once more. However, the government announced that approximately three months’ worth of inventory has been secured, including domestic inventory of vehicle urea and urea water, as well as scheduled imports from Vietnam and Japan.
An official from the Ministry of Strategy and Finance said, “We will consult closely with the Chinese government to ensure that the contracts our companies have already signed with Chinese companies can be introduced,” and added, “We will support the industry’s diversification of import sources and increase government stockpiles of vehicle components to meet domestic demand without disruption.” “We will make efforts in various ways to stabilize the market, including securing the market,” he said.
kys@news1.kr
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