FRANKFURT (dpa-AFX) - The rally fueled by the conflict in Iran continued for K+S on Friday. Shares are being boosted by the assumption that the war could potentially drive up fertilizer prices. A peak gain of 4.5 percent on Friday pushed the stock to 18.65 euros, its highest level since April 2023.
The shares have shown strong performance since November, gaining further momentum the previous day following annual results accompanied by a positive outlook. The stock had already surged nearly 15 percent on Thursday.
Citigroup expert Sebastian Satz explained yesterday that approximately ten percent of global potash production capacity is located in the Gulf region. The closure of the Strait of Hormuz represents a significant risk, particularly for the global availability of sulfur – a key raw material for various specialty fertilizers that is naturally contained in K+S potash fertilizer. Consequently, he expects that higher global market prices for sulfur will become an advantage for the Kassel-based company. The expert also noted that K+S has hedged 70 percent of its energy risk for this year and plans to pass on higher logistics costs to its customers./tih/jha/
