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Will the 'second urea solution crisis' recur? Concerns are growing that the 'nightmare of 2021,' when a supply crisis occurred after China ordered a halt to urea exports, might happen again.

Urea solution manufacturers, including Lotte Fine Chemical, predict that the current situation is unlikely to lead to a crisis. However, they explained that if abnormal demand such as hoarding occurs, it would be difficult to maintain normal supply levels.

[Image source=Yonhap News]

Urea solution is a catalyst used in diesel vehicle exhaust gas reduction devices, made by mixing distilled water with urea extracted from coal or natural gas imports.

After news broke on the 7th that the Chinese government had ordered some fertilizer companies to stop exporting urea, concerns have spread domestically that another 'urea solution crisis' like in 2021 could occur again.

On the 12th, urea solution manufacturers stated that production is proceeding normally. A Lotte Fine Chemical official said, "There are currently no problems with raw material supply, and we have secured raw materials through the end of the year. Although the proportion of Chinese imports remains high, as a backup, we have secured import sources from Southeast Asia and the Middle East, so supply can be immediately maintained in emergencies."

Another manufacturer representative said, "We are closely monitoring whether China will take additional measures related to urea," but added, "At this time, there is no problem with the supply of urea, the raw material for urea solution."

Most urea solution sales are also proceeding normally. The Ministry of Environment announced that, as of the 11th, 97% (3,014 out of 3,103) of gas stations that disclosed their urea solution inventory on the Korea National Oil Corporation's oil information system OPINET had urea solution in stock.

However, there is some temporary surge in urea solution demand in certain areas. Lotte Fine Chemical has temporarily suspended retail sales through its online mall due to sudden large orders.

The industry estimates that hoarding of urea solution is occurring online and at some gas stations, creating the appearance of a shortage.

The government has also stated that there is "no problem" regarding the urea solution shortage. The Ministry of Environment explained, "Consumers can check urea solution inventory on OPINET and purchase it at nearby gas stations. We plan to closely monitor the situation in China and the domestic manufacturing and distribution of urea solution to ensure that supply is not disrupted."

Meanwhile, in 2021, the Chinese government controlled exports of chemical fertilizer raw materials, including urea, due to the ban on Australian coal imports, which caused a domestic supply crisis of urea solution.

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