At Least One Commodity Could Benefit From Coronavirus: Phosphate
- Phosphate market seen tightening as China idles manufacturing
- Fertilizer stocks rally as traders say downturn may be over
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There’s at least one commodity that may benefit from China’s outbreak of coronavirus: phosphate.
The outbreak is expected to cause a two million-ton shortfall of the fertilizer ingredient in China as plants curtail production and transport is hindered, said Joc O’Rourke, chief executive officer of of Mosaic Co., the world’s largest producer. Much of the nation’s phosphate production is in Hubei province, the center of the outbreak, and the supply drop is expected to further tighten the market, according to the company.