Hong Kong Stock Movements | Fertilizer stocks continue their recent rally, China National Chemical Fertilizer (00297) issued a notice requiring clients not to participate in fertilizer market speculation.

Reuters Finance APP reports that fertilizer stocks continue their recent upward trend. As of the latest update, China National Petroleum Chemical (03983) rose 7.99% to HKD 3.65; Sinochem Fertilizer (00297) increased 4.76% to HKD 1.98; China Heart-to-Heart Fertilizer (01866) gained 3.45% to HKD 12.31.

On the news front, on March 12, Sinochem Fertilizer issued a notice stating that it is currently a critical period for spring farming fertilizer use in China. To further implement the national policy of ensuring fertilizer supply and stabilizing prices, customers are required not to participate in speculation or hoarding, and to actively maintain market order. Sinochem Fertilizer staff said the purpose of this notice is to call on the market to quickly deliver goods directly to end-users and to standardize market order.

Previously, several potash fertilizer companies had announced their prices and sales volumes for social supervision.

Fangzheng Securities released a research report stating that the Middle East is an important supplier of international urea. Iran and Qatar together influence global urea trade volume by 9-10 million tons, accounting for nearly 20% of global trade. Therefore, the Middle East plays a crucial role in international urea supply. The escalation of tensions between the US and Iran is likely to reduce this capacity, pushing up international urea prices. Additionally, soaring natural gas prices will further increase production costs for Middle Eastern urea, affecting international urea prices. The closure of the Strait of Hormuz will lead to higher international shipping costs, which will also drive up global potash fertilizer prices.