Deals signed to import urea solution from Malaysia and Mexico

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Deals signed to import urea solution from Malaysia and Mexico

Korea said Monday local firms have inked deals to import urea solution from other countries, including Malaysia and Mexico, a move expected to help ease a supply shortage of the key fluid needed in diesel cars to cut emissions.
Three Korean firms have signed contracts to import a combined 1.28 million liters of urea solution from Malaysia, Mexico and Australia, according to the government. Korea needs 600,000 liters of the solution for diesel cars per day.
A fourth Korean firm is in talks with a Vietnam firm to import 1,000 tons of urea for industrial uses.
The government said last week it is expected to secure a five-month stockpile of urea solution for vehicles through imports and other means.
Korea is making a flurry of diplomatic efforts to secure urea and its solution from other countries to avert a potential logistics crisis amid a supply shortage caused by China’s export curbs of urea.
Last month, China tightened export procedures for urea amid a power crisis caused by a coal shortage. Coal is the main feedstock to produce urea.
Korea said 97.6 percent of its urea imports came from China in the first nine months of this year, up from 88 percent in 2020, underscoring its heavy reliance on the resource-rich neighbor for the key material.
Last year, Korea imported 80,000 tons of urea, an amount sufficient to produce around 240 million liters of urea solution for diesel cars.

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