HK Stock Market Move | CHINA XLX FERT (01866) rose more than 8% in the afternoon, driven by the strong international urea prices, leading to the convergence of domestic export prices. The company is the leader in the urea industry.

CHINA XLX FERT (01866) rose more than 8% in the afternoon, up 8.02% to HKD 6.06 at the time of writing, with a turnover of HKD 30.7023 million. Founder released a research report stating that with the expected catalyst of the Indian urea tender in June, international urea prices have been strengthening since the end of May. At the same time, the strengthening international urea prices have gradually converged domestic export prices. In the first quarter of 2025, the domestic small granular urea FOB price is approximately $248 per ton, with a discount of about $123 to Black Sea FOB and about $157 to Arabian Gulf FOB. With the increase in domestic export prices, the average FOB price of domestic small granular urea in the third quarter is now $394 per ton, gradually converging with international prices. The bank pointed out that the company currently has a urea production capacity of 3.9 million tons and a compound fertilizer production capacity of 4.45 million tons. It is steadily advancing related capacity construction projects, including the Jiangxi Jiujiang industrial extension project expected to be completed and put into operation in the third quarter of this year; the Xinjiang Zhundong project (Phase I) is expected to be completed and put into operation by the end of 2026; and the Guangxi Guigang project (Phase I) is expected to be completed and put into production in the first half of 2017, with a stable pace of capacity expansion. It is expected that with the completion and operation of all ongoing projects, the company's urea + compound fertilizer production capacity is expected to exceed 14 million tons, further consolidating the company's leading position in the urea industry.