[Market Feature] Fertilizer Stocks Surge on Concerns Over Prolonged Strait of Hormuz Blockade

As concerns grow over the possibility of a prolonged blockade of the Strait of Hormuz due to the situation in Iran, fertilizer-related stocks are surging across the domestic stock market on the morning of March 13.

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As of 9:45 a.m. on this day, fertilizer company Chobi is trading at 19,075 won, up 18.18% from the previous trading day. Earlier in the session, it even surpassed 20,000 won per share. Namhae Chemical, the largest fertilizer producer in Korea, is up 13.40%, while organic fertilizer company Hyosung ONB has risen 7.36%.

This surge is interpreted as a result of growing concerns that a prolonged blockade of the Strait of Hormuz will disrupt fertilizer supply chains. Previously, Iran’s next leader, Mojtaba Khamenei, declared in his first official statement a hardline stance against the United States and Israel, announcing that the blockade of the Strait of Hormuz would continue. About 25-35% of the world’s fertilizer raw material trade passes through the Strait of Hormuz.

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