The country has initiated the early release of national strategic reserves of nitrogen, phosphorus, and compound fertilizers; Luhua Technology hits the daily limit twice in two days.

(Source: Caixin)

Component stocks Luxhua Technology hits the limit up for the second consecutive day, Jinjingda soars to the daily limit, Chuanjinnuo and Nongda Technology rise over 12%, while Chitianhua, Fubon Technology, Lutianhua, Salt Lake Shares, Huarong Chemical, and others follow the upward trend.

On March 13, the fertilizer sector opened higher and continued to rise. As of the latest report, component stocks Luxhua Technology (600691.SH) hit the limit up for the second day, Jinjingda (002470.SZ) reached the daily limit, Chuanjinnuo (300505.SZ) and Nongda Technology (920159.BJ) rose over 12%, and Chitianhua (600227.SH), Fubon Technology (300387.SZ), Lutianhua (000912.SZ), Salt Lake Shares (000792.SZ), Huarong Chemical (301256.SZ), and others followed the gains.

According to industry news, to ensure the demand for concentrated fertilizers during spring planting, relevant government departments have decided to organize the early release of the national fertilizer reserves for 2025/2026 (including nitrogen, phosphorus, and compound fertilizers). The storage enterprises are required to sell the reserved fertilizers based on local demand, effectively meeting the fertilizer needs of agricultural production in their regions and promoting orderly market transactions and stable prices.

Additionally, according to CCTV International News, the Strait of Hormuz is a crucial global shipping route. After the US and Israel attacked Iran, not only did international oil and natural gas prices soar, but the international fertilizer supply chain also experienced significant disruptions. The United Nations Conference on Trade and Development (UNCTAD) released a report indicating that shipping costs—including freight, vessel fuel, and insurance—are rising, leading to increased transportation costs across the entire fertilizer supply chain. US agricultural experts warn that American farmers will also be severely affected and may be forced to adjust their planting structures.

Guotou Securities believes that spring planting is the peak period for fertilizer use, accounting for about 45%-50% of annual fertilizer consumption. The main applications include topdressing for wheat, base and topdressing for spring corn, and base fertilization for early and mid-season rice. As spring fertilization preparations enter a critical stage, the fertilizer market is entering its traditional peak demand season, and the industry may experience structural growth.