On the afternoon of February 24, the A-share phosphate chemical sector saw a strong surge, with many leading stocks such as Yuntianhua, Liuguo Chemical, Hubei Yihua, Yuntu Holdings, and Xingfa Group hitting their daily limit. Chuanjinuo surged by more than 10%, while Jiangshan Shares, Sierte, Chuanheng Shares, and Qingshuiyuan also saw significant gains, resulting in a broad-based rally in the sector.
The recent announcement by the United States that it will include key agricultural inputs such as elemental phosphorus and glyphosate in the list of critical strategic materials, coupled with major producing countries such as Morocco and Russia controlling supply to maintain prices, has led to a continued tightening of international supply. As a core producer accounting for over 60% of global phosphorus production capacity, China has taken on the transfer of overseas orders, significantly enhancing its bargaining power in the industry.
The domestic market is entering the peak season for spring plowing and fertilizer preparation, with a concentrated release of demand for phosphate fertilizers and compound fertilizers, providing solid fundamental support for the industry. Meanwhile, the new energy sector continues to gain momentum, with the expansion of lithium iron phosphate production capacity driving steady growth in demand for industrial-grade phosphate. The phosphate chemical industry is extending from traditional agricultural inputs to new energy materials, opening up new growth opportunities.
According to data from SunSirs, fertilizer-related products have seen price increases since 2026, with ammonium sulfate rising by over 14%, urea by over 4%, and yellow phosphorus by over 3%. Driven by an optimized global supply structure, peak domestic demand, and increased demand for new energy sources, the phosphate chemical industry is expected to maintain its positive outlook.
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