The fertilizer and pesticide sector surges again, with multiple listed companies providing the latest responses

On the morning of February 25, the fertilizer and pesticide sector surged again. Sichuan Jin Nuo’s “20CM” hit the daily limit-up, while Chitianhua, Yuntianhua, Liuguo Chemical, Sirt, and Jinjingda also reached the limit-up. According to news reports, prices for mainstream products such as urea, potassium sulfate, and ammonium phosphate have risen sharply. Data shows that on February 24, the market price of ammonium phosphate (55% powder) reached 3,850 yuan/ton, a year-on-year increase of 16.67%. In response, a staff member from Jinjingda’s securities department stated that spring and summer are the traditional peak sales seasons for the fertilizer industry, which is currently in a seasonal boom cycle. From now on, roughly the next 100 days will be the industry’s peak sales period. Besides seasonal effects, the recent price increases are also related to raw material cost hikes. Raw materials for the fertilizer industry mainly include phosphate rock, phosphoric acid, sulfuric acid, and urea. The company has phosphate rock but has not yet begun mining; raw materials are mainly purchased externally. If raw material prices rise, the prices of end products will also increase accordingly. Additionally, senior executives from leading fertilizer listed companies told China Securities Journal that sulfur, iron pyrite, and sulfuric acid are routine raw materials for fertilizers. An increase in raw material prices will have some impact on companies, but whether product prices will rise in the future still depends on terminal sales and other factors. (China Securities Golden Bull)