South Korean drivers panic buy urea

South Korean drivers are panic buying urea, an additive used in diesel vehicles to reduce emissions, after China tightened exports, prompting the president's office to set up a taskforce on Friday to negotiate supplies from producer states like China.

Diesel cars represent 40 per cent of registered motor vehicles in South Korea as of August, government data showed, after South Korea in 2015 made it mandatory for diesel cars to use urea solutions to control emissions.

South Korea is heavily reliant on China for urea. About 97 per cent of imports came from China between January and September, according to the trade ministry, up about 8 per cent from a year ago.

China's customs announcement last month of inspection certificates to ship fertiliser and related materials like, a type of nitrogen mainly used as a fertiliser in agriculture, was considered a de facto ban on exports to assure supplies in its domestic market.

Prices of industrial urea in South Korea jumped more than 80 per cent to $483 per tonnes in September from October 2020, said the trade ministry.

A barrel of urea solution that used to cost 10,000 won ($8.45) per 10 litre was now traded at as much as 120,000 won on online second-hand markets, local media reports said.

Desperate South Korean drivers looking for urea solutions, also known as diesel exhaust fluid, were sharing locations of gas stations that still had inventory, while those who had stocked up ahead were selling at steep markups.