On the 9th in early trading, Korea's fertilizer-related stocks also surged across the board as concerns over supply and demand grew on expectations that the Iran situation could be prolonged.
As of 9:29 a.m. on the 9th, Chobi was trading at 18,960 won, up 4,370 won (29.95%) from the previous session. It hit the upper price limit (the daily price increase cap) right after the open.
At the same time, Namhae Chemical, grouped with fertilizer stocks, also hit the upper price limit, and Hyosung ONB and Nousbo were strong, up 24.51% and 19.21%, respectively.
If the Strait of Hormuz is blocked for an extended period due to the Iran situation, concerns over global fertilizer supply and demand could increase, which is seen as lifting domestic fertilizer stocks.
The Strait of Hormuz is a key transport corridor that handles about 20% of the world's crude oil and liquefied natural gas (LNG) shipments, as well as one-third of fertilizer trade. Qatar operates the world's largest single urea plant, but production has halted as gas output was suspended following Iran's recent attack on LNG facilities, stopping plant operations.