Jinwu Financial News | The stock price trend of Sinochem Fertilizer (00297) was strong. As of press release, it was HK$1, up 8.7%, with a turnover of HK$19.217,300. Also, China Heart Link Fertilizer (01866) rose 2.39% to HK$3.85.
CITIC Securities released a research report saying that the bottom range of global potash prices is expected to be quite clear in 2024. On the demand side, under low food prices, subsequent potash demand is expected to be basically stable, and global potash demand is expected to rise back to 2020 levels in 2024, waiting for the next round of the food cycle. On the supply side, global potash production expansion is progressing steadily, and domestic enterprises are in an important expansion period of 2024-2026. It is expected that 2024-2026 will be in a low-capacity investment phase.
The bank recommended two main investment lines: 1) the price of potash fertilizer showed a weak rebound due to the short-term mismatch of supply, and the advantage of scale would improve performance; 2) during the empty window of new overseas production capacity, rapid expansion and increase profits.