The government is evolving due to concerns about the ‘urea water crisis’… “Stock up two months’ worth of car supplies.”

Due to China’s export controls, concerns about a recurrence of the ‘urea shortage situation’ for the first time in two years are not abating. The proportion of industrial elements imported from China is 90%, but stockpiles last only two months. The government 토토사이트began to fight the situation, saying there were no official export restrictions.

In a briefing on the 8th, the Ministry of Strategy and Finance said, “As a result of confirmation through diplomatic lines such as the embassy in China, the Chinese government has not taken any official measures to control the export of urea for fertilizer.” Kang Jong-seok, vice-director of the Ministry of Strategy and Finance’s Economic Security Supply Chain Planning Group, said, “Only one Chinese chemical fertilizer company has announced a policy to reduce fertilizer exports,” and added, “We do not expect comprehensive export restrictions like in the past (2021).” Bloomberg News previously reported on the 7th that “Chinese authorities requested some fertilizer producers to stop exporting urea for fertilizer as domestic urea prices soared.”

The government says that even if China completely restricts exports of urea for fertilizers, there will be no major disruption in domestic supply and demand. This is because import diversification has been achieved to the extent that the proportion of Chinese fertilizer urea imports has decreased from 65% in 2021 to 17% this year (January to July). The stock of fertilizer elements in private companies and agricultural cooperatives is also at 77.4% of the annual amount needed. In particular, the price of fertilizer urea from the Middle East this month was $360 per ton (t), down 20.8% compared to the same period last year.

The automotive (industrial) element is a concern. This is because the proportion of Chinese imports is still high at 90.2% (January to July of this year, based on import volume). Private and public stockpiles are limited to a two-month supply. If China begins to restrict exports of automotive components and this continues for a long period of time, there is a possibility that shortages will occur again. The Ministry of Trade, Industry and Energy said in a document released after a meeting with the industry that day, “There are alternative ships for industrial elements in Southeast Asia and the Middle East, and companies are already looking to secure replacement supplies,” and added, “Even if a supply chain crisis occurs, we can fully respond.”

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