Seoul - The South Korean government is investigating the recent suspension of urea exports by China, a move that has raised concerns in Seoul.
According to Yonhap News Agency, China's customs authorities have stopped the export of urea to South Korean companies and have not yet provided an explanation in response to Seoul's inquiries.
A finance ministry official, in a statement to Yonhap News Agency, mentioned that the Chinese government has not issued an official position regarding this halt in urea exports. The South Korean government is actively monitoring its urea solution inventory and has convened an emergency meeting to assess the situation. Further, a joint meeting involving the industry, finance, and foreign ministries took place on Thursday, with another scheduled for Monday.
Government sources suggest that the Chinese action might be related to considerations of its domestic supply and demand rather than a formal export control measure. This suspension comes after South Korea experienced significant disruptions in its logistics networks in 2021 when China restricted its urea exports during a trade dispute with Australia.
Currently, South Korea's urea inventory is expected to last approximately three months, factoring in planned imports from Vietnam, Japan, and other countries, excluding China.