Ban on Hoarding Urea Solution and Syringes Ends Due to Stable Domestic Supply

▲ A gas station selling urea solution in Seoul

The government is ending the ban on hoarding vehicle urea solution, urea, syringes, and injection needles, which had been implemented following supply instability caused by the Middle East conflict.

The government held a joint meeting of the Ministerial Meeting on Economic Affairs and the Ministerial Meeting on Science and Technology at the Government Complex-Seoul today (the 28th), announcing that the domestic supply situation has stabilized and that the public notice banning hoarding will expire on the 31st of this month.

Urea solution is a catalyst used in diesel vehicle emission reduction systems, and most diesel vehicles will not start without a supply of urea solution.

Due to the impact of the Middle East conflict, which caused instability in the supply of raw materials, the government has banned the hoarding of urea solution and urea since March 27 of this year.

The public notice has since been extended three times through this month.

Under the public notice, importers, manufacturers, and sellers of urea solution or urea were prohibited from storing urea solution or urea in excess of 200% of their monthly average sales volume from the previous year for 7 days or more.

The hoarding of syringes and injection needles was also prohibited starting April 14 due to instability in the supply of naphtha, their raw material.

The notice was extended twice and remained in effect for over six months.

Manufacturers and sellers of syringes and injection needles were similarly restricted from storing them in excess of 200% of their monthly average sales volume from the previous year for 5 days or more.

However, the government assessed that import conditions have improved as China allocated approximately 2 million tons in urea solution and urea export quotas to Korea at the end of May, and domestic companies proceeded with contracts to import materials from China.

It was found that domestic urea inventory, combining public reserves and private stock, currently secures 4 to 5 months' worth of supply.

Supply for syringes and injection needles has also been analyzed as stable, with manufacturers' inventory levels increasing since June.

In fact, the inventory of syringe manufacturers steadily increased from 47.7 million units in April to 81.58 million units this month.

Accordingly, the government plans not to extend the public notice after it expires on the 31st.

An official from the Ministry of Finance and Economy stated, "Even after the notice expires, we will continuously monitor supply and demand conditions, including inventory and prices, and promptly review necessary response measures should concerns regarding supply disruptions arise."

(Photo: Yonhap News)

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