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China to introduce urea quota system for tighter export control: Sources

Collected: 2023.12.05

Distributed: 2023.12.06

Source: Go Direct

Urea solution on display at the mart [Photo by Lee Chung-woo]

The Chinese government is known to have notified its local fertilizer companies that it will implement a urea quota system to limit exports from 2024, a move intended to keep a tight rein on the amount of urea that goes to other countries, including South Korea.

According to sources from the industry and government on Monday, Korean urea water solution companies have recently been informed by local Chinese fertilizer companies that the Chinese government will implement a urea quota system from next year.

Earlier, there were reports that Chinese authorities suspended customs procedures for urea exports to Korea.

China’s move comes as a big blow to the Korean urea industry that relies on China for 90 percent of its vehicle urea.

A halt in urea imports from China could lead to price hikes or shortages.

China produces about 50 million tons of urea annually. Industry insiders noted that China may allocate a portion of local production for exports.

Observers in the Chinese fertilizer industry say that the urea export restrictions could last as long as the first quarter of next year.

“Chinese authorities may restrict exports until the first quarter of next year given the domestic supply situation,” they said.

The Korean government, in the meantime, remains silent on the matter, saying that China’s urea quota system has “not been officially confirmed.”

By Lee Sae-ha, Sohn Il-seon, and Choi Jieun

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