Belarusian President proposed that Belarusian potassium fertilizer companies coordinate with Russian producers to reduce potassium fertilizer production by 10%.

According to reports, Lukashenko, during a meeting with the newly appointed CEO of the top Belarusian potassium fertilizer producer Belaruskali, Andrey Rabikov, stated: "Everyone will understand that this is a very expensive product, and you need to pay the appropriate amount for it." He also requested Rabikov to follow up on his proposal after discussions with some Russian fertilizer companies.

According to statistics from the International Fertilizer Association (IFA) and the Food and Agriculture Organization of the United Nations (FAO), Russia and Belarus together control up to 40% of global potassium fertilizer exports, and Belarus' Belaruskali potassium fertilizer company has been subject to joint sanctions initiated by the USA and the EU.

Potash supply is relatively concentrated, with Russia / Belarus / Canada being the three major countries.

In the long-term perspective, downstream demand is relatively rigid, and the industry trend mainly focuses on industry supply.

The supply of potassium fertilizer is gradually recovering after being influenced by geopolitics, but costs have increased slightly.

Leading potassium fertilizer supply companies have a strong demand for prices and are expected to support prices through coordinated supply adjustments.

China is the world's fourth largest potassium fertilizer producer. Sinolink Securities research suggests focusing on China's potassium fertilizer production companies.

Potassium fertilizer-related Hong Kong stocks include:

Migao Group (09879): Migao Group has high-quality customer resources, large growth space, and sales growth rate is expected to maintain around 15% in the next three years. In addition, China relies on potassium fertilizer imports, and Migao has the rare right to import potassium fertilizer. Migao Group has been operating potassium fertilizer business in China for over 20 years, establishing a comprehensive potassium chloride procurement channel. It can obtain stable potassium chloride supply from overseas major potassium fertilizer producers at competitive prices.

Sinofert (00297): Sinofert recently officially launched the first bio-potassium fertilizer product in the "Weidifeng" series, marking another solid step in Sinofert's "bio+" strategy. It is reported that the company's net income in the first quarter is approximately RMB 0.499 billion, an increase of about 1.63% year-on-year. This is mainly due to the group's steadfast promotion of the "bio+" strategic transformation, focusing on bio core single products, continuously promoting biotechnology products, driving steady growth in sales volume and gross profit level, and resisting the impact of market fluctuations on performance. It is reported that on July 9, the China Potassium Fertilizer Import Negotiation Group (Sinofert, Sinochem, CHEMAN) reached an agreement with Food Safety Supply Chain Co., Ltd. (Dubai) on the annual import contract price of potassium fertilizer for 2024, with a contract price of $273 per ton CFR.