HK Stock Market Move | Chemical fertilizer stocks continue recent gains. SINOFERT (00297) issued a notice requiring customers not to participate in speculation in the chemical fertilizer market.

Fertilizer stocks continue to rise in recent period. As of the time of writing, CHINA BLUECHEM (03983) rose by 7.99% to HK$3.65, SINOFERT (00297) rose by 4.76% to HK$1.98, and CHINA XLX FERT (01866) rose by 3.45% to HK$12.31. On the news front, SINOFERT issued a notice on March 12th, stating that it is currently a critical period for spring farming fertilizer in China. In order to further implement the national spirit of ensuring stable prices and supply of fertilizers, customers are required not to engage in speculation or hoarding, and to actively maintain market order stability. SINOFERT staff stated that the purpose of this notice is to appeal to the market to quickly pick up the goods and deliver them directly to end customers, in order to regulate market order. Several potash fertilizer companies have already announced prices and sales volumes subject to social supervision. Founder released a research report stating that the Middle East is an important supplier of urea internationally. Iran and Qatar collectively affect global urea trade volume by 9-10 million tons, accounting for close to 20% of the total global trade volume. Therefore, the Middle East plays a crucial role in international urea supply, and the escalation of US-Iran tensions will inevitably result in a reduction in the supply of this capacity, thereby pushing up international urea prices. In addition, the skyrocketing natural gas prices will further increase the production costs of urea in the Middle East, thereby affecting international urea prices. The closure of the Strait of Hormuz, leading to a rise in international shipping costs, will also push up international potash fertilizer prices.