Fertilizer stocks advanced notably in Hong Kong trading. At the time of writing, CHINA BLUECHEM (03983) rose 6.37% to HK$3.34, SINOFERT (00297) gained 3.35% to HK$1.85, and CHINA XLX FERT (01866) increased 2.14% to HK$11.93. The rally follows recent developments in the Middle East, where QatarEnergy halted liquefied natural gas production after an attack on its facilities on March 2. On March 3, the company expanded the shutdown to include all downstream production of urea, methanol, polymers, and aluminum within Qatar. A research report from Founder Securities highlighted that the Middle East is a key global supplier of urea. Combined, Iran and Qatar influence 9–10 million tonnes of global urea trade volume, accounting for nearly 20% of total international trade. As a result, any escalation in U.S.-Iran tensions could significantly reduce this supply, driving up global urea prices. Additionally, surging natural gas prices are expected to raise urea production costs in the Middle East, further impacting international urea prices. Disruptions to shipping through the Strait of Hormuz, which have increased global freight rates, are also likely to push up international potash prices.
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