South Korean drivers panic buying urea. (Diagram/PIXABAY)
After the mainland restricted exports, South Korean drivers panic buying urea because the additive can reduce emissions from diesel vehicles. In response, the Blue House set up a task force to negotiate supply and other issues with the mainland and other producing countries.
According to a report by Reuters, South Korean government data showed that as of August, diesel vehicles accounted for 40% of registered motor vehicles in South Korea. Prior to this, South Korea mandated that diesel vehicles use urea to control exhaust emissions in 2015. South Korea’s imports of urea are extremely dependent on the mainland. According to data from the Ministry of Trade, Industry and Energy, from January to September, up to 97% of imports came from the mainland, an increase of about 8% over the previous year.
China Customs announced last month that it will review the quarantine report of fertilizers and related materials (such as urea), which is considered an export ban to ensure supply in its domestic market.
The Ministry of Trade, Industry and Energy stated that starting from October 2020, the price of industrial urea in South Korea has risen by more than 80% in September to US$483 per ton (about NT$13,000). South Korean media reported that urea sells for 10,000 won (about NT$235) per 10 liters, and the transaction price in the second-hand market has even reached 120,000 won (about NT$2,828).
In response to this, Park Soo-hyun, spokesperson of the Presidential Office of South Korea, stated that the Blue House has set up a task force to conduct diplomatic consultations with the mainland and other producing countries to ensure sufficient urea supply.
However, the director of a major urea supplier in South Korea told Reuters that due to South Korea’s excessive dependence on the mainland, it is not easy to diversify the supply of urea. “We have signed a contract with Russia in October, and it will only be available in January Goods, and the quantity is about 10% of what we got from the mainland in the past.” He estimated that after November, the inventory may be exhausted.
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