Namhae Chemical Corp. led South Korean fertilizer makers higher in Seoul trading after China imposed an export tax, triggering expectations that global fertilizer prices should remain strong.
Namhae Chemical climbed 4.4 percent to 18,900 won as of 10:19 a.m. on the Korea Exchange. Capro Corp. added 2.8 percent to 18,350 won. KG Chemical Corp. rose 4 percent to 10,200 won. The benchmark Kospi stock index gained 0.3 percent.
China will impose a 35 percent temporary tax and a 75 percent special tax on exports of some fertilizer products from today until the end of December, the Ministry of Finance said in a statement posted on its website yesterday.
The tax was imposed because declining production and rising exports led to a fertilizer shortage in China, Woori Investment analysts led by Kim Jae Jung said in a note today. “The move boosts the possibility of a surge in global fertilizer prices, which should be positive for Korean fertilizer makers.”