China Orders Domestic Fertilizer Companies to Halt Urea Exports
Published on September 7, 2023 at 19:41
The Chinese government has recently issued an order for domestic fertilizer companies to cease exporting urea, according to a report by Bloomberg News. The move is expected to have significant implications for both China and the global fertilizer market.
Since the beginning of this month, major Chinese fertilizer manufacturers have refrained from signing new export contracts, in compliance with the government instructions, as stated by an anonymous source familiar with the situation.
The price of urea futures on China’s Zhangzhou Commodity Exchange has witnessed significant fluctuations, rising by 50 percent between mid-June and late July. This surge in prices is a result of decreased urea inventory in China and an increase in exports, according to local futures trading experts.
As China is the largest producer of urea in the world, the halt in exports could potentially trigger shortages and price hikes in urea and its related products across various regions. Notably, India, South Korea, Myanmar, and Australia are highlighted as the top importers of Chinese urea, as reported by Bloomberg News.
Despite the speculations and concerns raised, China’s Ministry of Commerce and National Development and Reform Commission have not yet provided any official comments on this matter.
This is not the first time that countries have faced urea shortages due to China’s restrictions on exports. Last year, Korea also experienced similar challenges, emphasizing the impact of China’s urea export policies on the global market.
We will continue monitoring the developments surrounding this issue and keep you informed on further updates as they become available.
For media inquiries, please contact Hwang Cheol-hwan at hwangch@yna.co.kr
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Published on September 7, 2023 at 19:41
Execution time2023-09-07 19:41
A view of the urea plant built in Bangladesh with the participation of a Chinese company
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(Seoul = Yonhap News) Reporter Hwang Cheol-hwan = Bloomberg News reported on the 7th that the Chinese government ordered domestic fertilizer companies to stop exporting urea.
Citing a source familiar with the situation, the media reported that some of China’s major fertilizer manufacturers have not signed new export contracts since the beginning of this month in accordance with Chinese government instructions.
The price of urea futures on China’s Zhangzhou Commodity Exchange has been fluctuating since it soared 50 percent between mid-June and late July, the news agency said.
At the same time, local futures trading experts explained that the increase in prices was a result of a decrease in inventory in China and an increase in exports.
As China is the world’s largest producer of urea, halting exports could lead to shortages or price increases in urea and related products, such as urea, in many parts of the world.
Bloomberg News highlighted India, South Korea, Myanmar and Australia as the countries that import the most Chinese urea.
China’s Ministry of Commerce and National Development and Reform Commission did not immediately comment on the reports, Bloomberg reported.
In 2021, Korea also experienced urea and urea shortages due to China’s restrictions on urea exports.
hwangch@yna.co.kr
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