Chambal Fertilisers, Cormandel International: Fertiliser shares fall as China plans to ban sulfuric acid exports

Coromandel International shares declined as much as 3.87% to hit an intraday low of ₹2,071, FACT shares fell as much as 4.12% to hit an intraday low of ₹822, Deepak Fertlisers shares dropped as much as 5% to hit an intraday low of ₹1,034 and National Fertilisers declined as much as 4.4% to an intraday low of ₹71.79.

Rashtriya Chemicals and Fertilisers, National Fertilisers, Madras Fertilisers and Nagarjuna Fertilisers also fell between 1% and 3%.

Sulfuric acid prices have been rising since the start of the Iran conflict, as the effective closure of the Strait of Hormuz blocks sulphur shipments from the Middle East, where it’s a product of oil and gas refining. The region produces one third of the world’s sulphur, the report added.

Report of ban on sulfuric acid exacerbate pain for Indian fertiliser makers which were already suffering from supply constraints of urea and di-ammonium phosphate due to closure of the Strait of Hormuz, a key route through which raw materials for making fertilisers are supplied, analysts noted.

On Friday, fertiliser shares came under buying interest after United States and Iran last week announced a two-week ceasefire.

As of 11:12 am, most of the fertiliser shares were trading lower in line with the benchmark NIFTY50 index which was down 1.3%.