Sequential Import of 2-3 Months' Worth of Elements from China... Not a Fundamental Solution

[Image source=Yonhap News]

[Asia Economy Reporters Yoo In-ho, Lee Ji-eun, Joo Sang-don, Military Specialist Yang Nak-gyu] Korean companies are expected to sequentially import 18,700 tons (t) of urea, which they had contracted with China, into the country. This amount is sufficient to produce 2 to 3 months' worth of urea solution, so the shortage of urea solution is expected to ease somewhat. However, since the supply instability has not been fundamentally resolved, there are calls for additional measures.

The Ministry of Foreign Affairs stated on the morning of the 10th, "As a result of communicating with the Chinese side through various channels to expedite the import procedures for Chinese urea, it has been confirmed that the export procedures for the 18,700t of pre-contracted urea by our companies will proceed," and added, "It was also confirmed by the Chinese local embassy that the inspection of some urea quantities for which Korean companies had applied for pre-export inspection has been completed."

Recently, due to coal and power shortages in China causing a shortage of urea, China mandated pre-export inspections, effectively putting a brake on exports. Of the 18,700t, about 7,000t are quantities for which pre-export inspection applications were made. Although it is not confirmed how much of this has been inspected, 7,000t will be prioritized for import into Korea.

Considering that the urea content in urea solution is about 30%, 18,700t of urea can produce 56,100t of urea solution. According to the industry, the domestic monthly consumption of urea solution is between 24,000 and 27,000t. If all contracted quantities with China are imported normally, it would be enough to last 2 to 3 months. A Ministry of Foreign Affairs official said, "Since the export procedures have been confirmed to be progressing, this will be an important turning point in resolving the urea solution supply shortage."

Although the immediate crisis has been averted, supply instability has not been completely resolved. It is not yet possible to know exactly when the 18,700t of urea will arrive. Also, since the contracted quantities will be imported sequentially rather than all at once, this must be taken into account in terms of resolving the supply shortage. A Blue House official said, "We will disclose information immediately as quantities and timing are confirmed," and added, "It is difficult to be optimistic about the situation, but we are making every effort." Meanwhile, the military has decided to urgently dispatch the multi-purpose transport aircraft KC-330 this afternoon to import 27,000 liters of urea solution from Australia.

This content was produced with the assistance of AI translation services.