On March 13, it was reported that Hong Kong-listed fertilizer stocks continued their recent upward trend. As of the time of writing,$KO YO GROUP (00827.HK)$up nearly 8%,$SINOFERT (00297.HK)$Surging over 5%,$CHINA BLUECHEM (03983.HK)$rose more than 3%.
In terms of news, on March 12, Sinochem Fertilizer issued a notice stating that the current period is a crucial time for domestic spring farming fertilizer use. To further implement the national policy of ensuring fertilizer supply and stabilizing prices, clients are required not to engage in speculation or hoarding, and to actively maintain market order stability. A Sinochem Fertilizer representative stated that the purpose of this notice is to appeal to the market to expedite direct delivery to end-users and standardize market order. Previously, several potash fertilizer companies had already disclosed their pricing and sales volumes for public oversight.
Founder Securities published a research report stating that the Middle East is a key supplier of international urea. The combined impact of Iran and Qatar affects 9-10 million tons of global urea trade, accounting for nearly 20% of the total global trade volume. Therefore, the Middle East plays a pivotal role in the international urea supply. Escalation of tensions between the US and Iran will inevitably lead to a reduction in this capacity, thereby driving up international urea prices. Additionally, the surge in natural gas prices will further increase the production costs of urea in the Middle East, which will, in turn, affect international urea prices. The suspension of shipping through the Strait of Hormuz has caused international freight rates to rise, which will push up international potash prices.
Editor/Melody
