Urea Solution and Syringes: Ban on Hoarding Extended by Two Months Through October

Storage Limit Eased to 200%
Major Items to Remain Under Ongoing Monitoring

The ban on hoarding and cornering urea solution and medical syringes will be extended for an additional two months, until the end of October. While the supply chain has stabilized recently due to the lifting of China’s export controls and stockpiling, the government decided on this measure given the continued uncertainty surrounding geopolitical risks.

Koo Yoon-chul, Deputy Prime Minister and Minister of Economy and Finance, is giving opening remarks while presiding over the "Emergency Economic Headquarters Meeting, Economic Ministers Meeting, and Ministers' Task Force for Special Management of Livelihood Prices" held on August 20 at the Government Seoul Office in Jongno-gu, Seoul. Ministry of Economy and Finance.

On August 20, during the "Emergency Economic Headquarters Meeting, Economic Ministers Meeting, and Ministers’ Task Force for Special Management of Livelihood Prices" presided over by Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul, the government announced a joint plan with relevant ministries entitled "Guidelines for the Ban on Hoarding and Cornering of Urea Solution·Urea and Syringes·Needles." The core of the decision is to extend the ban under the Price Stabilization Act, which was scheduled to end on August 31, for two more months—from September 1 to October 31.

For vehicle urea solution and urea, the previous standard, which prohibited storage exceeding 150% of last year’s monthly average sales for more than seven days, will be relaxed to 200%. While maintaining the regulatory framework, this measure is intended to give companies more flexibility in securing inventory.

The current supply situation for urea is showing a marked recovery. Following China’s lifting of export controls, an export quota of approximately 2 million tons has been allocated, and domestic companies are proceeding smoothly with contracts to import around 7,000 tons of Chinese urea, which is equivalent to a month’s supply. As a result, combined public and private inventories of urea in the country now stand at 3 to 4 months’ worth, which is typical for normal times. In consideration of this market stability, the government decided to raise the storage limit, and will continue market monitoring through October in light of potential contingencies in the Middle East situation.

The ban on hoarding and cornering of medical syringes and needles, in place since April due to concerns over unstable supply of raw materials such as naphtha, will also be extended until October 31. The syringe market has continued to stabilize, with manufacturers’ inventories increasing steadily since June. While daily production remains around 3 to 4 million units, manufacturers’ inventory increased from about 49 million units in early May to 69.54 million units as of the second week of August.

Since the government already relaxed the storage standard (from 150% to 200%) and lifted sales restrictions on July 24, the current revision will keep these standards in place but only extend the effective period by two more months, to hedge against possible supply disruptions for raw materials.

Meanwhile, the government plans to closely analyze the unfolding situation of the Middle East conflict and domestic and international raw material distribution trends during the extended period, before deciding whether to further extend the ban on hoarding and cornering of urea solution and syringes. The ban on hoarding and cornering of petroleum products—which is being operated in parallel with the price ceiling system (such as banning withdrawals of less than 90% of the previous year’s monthly withdrawals)—will also continue without interruption until the 12th of next month.

This content was produced with the assistance of AI translation services.