"China to Ban Yeo-so Exports Until Q1 Next Year...Cargo Retrieved at Port"

China May Implement Export Quota System
Supply Expected to Decrease Ahead of Chunje
South Korea and China Likely to Operate Director-General Level Consultative Body

As Chinese authorities suddenly suspended customs clearance for industrial urea exports to South Korea, the Chinese fertilizer industry has speculated that urea exports may continue until the first quarter of next year.

According to the Chinese Chemical Fertilizer Network, an online platform for the Chinese chemical fertilizer industry, industry analyst Pu Yanan posted on the 1st that "at a meeting held on the 24th of last month, 15 major urea stockpiling and trading companies including Zhongnong Group and Zhonghua Group agreed that the total export volume next year would not exceed 944,000 tons, and signed a voluntary (restriction) agreement on urea exports for next year."

He added, "There have been rumors recently about a complete export ban, specifically that exports will be prohibited until the first quarter of next year," and "According to what I have found, some ports currently do not allow exports even with the necessary documentation, cargo is piling up at the ports, and there are reports of port cargo being recalled." If Pu Yanan's post is accurate, China's urea export route is expected to be blocked until the first quarter of next year, raising concerns that the volume of exports entering South Korea will significantly decrease.

According to statistics from the General Administration of Customs of China, China's urea exports from January to October this year amounted to 3.39 million tons. Urea is divided into industrial urea used in vehicles and fertilizer urea, and as of October, South Korea imported 91.8% of the industrial urea used in vehicles from China.

According to the South Korean government and industry, the General Administration of Customs suddenly suspended the export of industrial urea from a Chinese local company to a major South Korean corporation on the 30th of last month. Based on information obtained through various channels including local embassies and importing companies, the South Korean government judged that the Chinese side suspended customs clearance not due to political intentions but because they need to prioritize resolving domestic urea supply issues.

In fact, according to Xinhua Finance, an economic media outlet affiliated with the state-run Xinhua News Agency, the National Development and Reform Commission, China's macroeconomic authority, emphasized the need to stockpile fertilizer for food security and spring planting at a "Natural Gas Supply Matching Meeting for Gas Nitrogen Fertilizer Enterprises" held by the China Nitrogen Fertilizer Association on the 17th of last month. Fertilizer companies attending the meeting also expressed their intention to stabilize the domestic fertilizer market by lowering prices and suspending exports, Xinhua Finance reported.

Through another article, Xinhua Finance also reported that "domestic urea exports are being affected by policy," noting that inspection and quarantine times have been extended to 60 days since last month, and that an allocation system for exports will be implemented next year.

In response to concerns raised in South Korea, the Chinese side explained that they would seek an amicable resolution. According to multiple sources, Chinese authorities recently stated in contacts with the South Korean side that the cooperative stance on smooth supply chain collaboration between South Korea and China remains unchanged. The two countries agreed to operate a bureau-level consultative body between industrial authorities to discuss supply chain stability issues related to urea, with operations expected to begin as early as this month.

However, based on consultations between South Korean and Chinese authorities, even if some urea products whose shipments were suspended at the customs clearance stage are exported, the domestic urea supply issue in China has not yet been resolved, so the export restriction stance is likely to continue until early next year. Chinese media predict that urea supply will significantly decrease before the Chinese Lunar New Year (Chunjeol).

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