CHINA BLUECHEM (03983) saw its shares rise more than 6%. At the time of writing, the stock was up 6.62%, trading at HK$3.22, with a turnover of HK$117 million. The price movement is linked to escalating tensions between the US and Iran. Analysts at Guolian Minsheng Securities suggest that the conflict could drive up international prices for methanol and urea. Iran is the world's second-largest methanol producer. Regarding urea, Iran's production capacity accounts for approximately 5.4% of the global total, with its actual exports meeting 10% to 15% of international demand, making it the second-largest urea exporter after Russia. A previous Huatai Securities research report highlighted that CHINA BLUECHEM, a fertilizer and chemical materials company controlled by the CNOOC Group, benefits from a natural gas cost advantage, which supports stable profitability in its urea and methanol operations. For future growth, the company's ongoing development of a 1.6 million-ton phosphate rock project is expected to enhance the self-sufficiency rate of raw materials for phosphate fertilizers. Furthermore, with the widening price gap between international and domestic urea and phosphate fertilizers since early 2025, the company's exports of these products are anticipated to contribute additional profits.
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