The South Korean government is looking into the possibility of sourcing phosphate products, after Chemical Fertiliser Network, an online platform for the Chinese fertilizer industry, issued a notice last month suspending export inspections for ammonium phosphate. As a result, the process of new ammonium phosphate exports has been suspended since last month.
China is one of the world’s largest producers of ammonium phosphate, which is used as a raw material for chemical fertilizers. South Korea is said to be 95% dependent on China for its ammonium phosphate. South Korea’s Ministry of Agriculture, Food and Rural Affairs is said to be reviewing the ammonium phosphate situation and considering diversifying its imports to Morocco.
“Although Chinese ammonium phosphate exports are subject to restrictions, the impact on domestic fertilizer supply and demand will be limited until the first quarter of next year”, said the Ministry of Agriculture, Food and Rural Affairs, adding that “the ammonium phosphate stock is around 40,000 tonnes and can be supplied until May next year”.
The Chinese government’s suspension of urea export permits has intensified fears of a “urea shortage”. The government claims to have enough urea for vehicles until the first quarter of next year, and has responded by diversifying the supply chain and combating hoarding. However, the market remains unstable. Some service stations are running out of urea, demand is strong and online retailers are limiting the number of units per person.
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