Trump makes a big move! The phosphate chemical sector erupts again, with financiers rushing to buy multiple concept stocks within a month

On the morning of February 25, the phosphate chemical sector continued to strengthen, with all 45 concept stocks rising across the board. Among them, Chuanjinno and Qing Shui Yuan hit the 20cm limit-up, Chengxing Shares recorded two consecutive limit-ups, and multiple stocks such as Liuguo Chemical, Yuntianhua, and Hebang Biological also surged to the daily limit. Several others, including Tianji Shares, Xingfa Group, and Hubei Yihua, followed suit with gains.

The U.S. Lists Phosphorus and Glyphosate as National Security Priorities

According to media reports, President Trump recently signed an executive order invoking the Defense Production Act, elevating phosphorus and glyphosate herbicide to the status of national security priorities.

The executive order states that any disruption in the supply of these two critical materials could expose the U.S. defense industrial base and food supply to risks. It directs the Secretary of Agriculture, Sonny Perdue, to coordinate with the Department of Defense to follow up on relevant regulations and measures to ensure the continuous supply of these products.

As early as November last year, the U.S. Geological Survey included phosphate rock in its list of critical minerals for the first time. These measures may lead to a restructuring of the global phosphate supply chain and push international phosphate fertilizer prices above $700 per ton.

Data shows that phosphate is a fundamental material for the defense industry, used in smoke, lighting, and combustion devices, and is also a key component in semiconductors. Additionally, phosphate is a vital raw material for glyphosate herbicide, which is the most widely used crop protection tool in U.S. agriculture.

Institutions Optimistic About Investment Opportunities in the Phosphate Industry Chain

In recent years, China’s mineable phosphate ore grades have declined, increasing extraction difficulty and costs. The addition of new capacity takes a long time to come online, while demand from downstream sectors, especially lithium iron phosphate batteries, continues to grow. The domestic supply and demand of phosphate ore are tight, and the resource scarcity of phosphate is becoming more apparent.

Guosen Securities pointed out that phosphate ore is the core raw material of the phosphate chemical industry. China supports nearly half of the global production with only 5% of the world’s reserves, facing significant resource security pressure. The scarcity attribute continues to strengthen, and the long-term price center of phosphate ore is expected to remain high. Additionally, the demand for phosphate ore from energy storage applications is likely to increase marginally.

Huatai Securities also believes that, benefiting from the growth in production and sales of lithium iron phosphate industry, demand for upstream products such as phosphate ore, yellow phosphorus, phosphoric acid, and industrial ammonium phosphate is expected to be driven. Due to high energy consumption and resource characteristics, many new capacities are constrained by policies. With supply and demand improving, the prospects for related products are expected to be positive, and companies with integrated phosphate ore resources are likely to benefit fully.

Looking at the entire chemical industry, UBS Securities noted that after four years of deep adjustment, the industry is at a historical bottom. The phase of unregulated capacity expansion has ended, and with policies against “involution,” overseas capacity withdrawals, and explosive demand from emerging industries, the supply-demand pattern is undergoing a fundamental reversal. It is expected that the industry will enter a new three-year upward cycle from 2026 to 2028, with a “Davis double play” of profit recovery and valuation re-rating.

Margin Investors Are Snatching Up Multiple Concept Stocks This Month

According to Eastmoney’s concept sector data, currently, 45 stocks in the A-share market are related to the phosphate chemical concept, with a total market value of about 1.4 trillion yuan. Luoyang Molybdenum leads significantly, followed by Sichuan Road & Bridge, Yuntianhua, China Chemical, and Hunan Yunneng.

Since the beginning of the year, most phosphate chemical concept stocks have seen their share prices rise, with an average increase of nearly 15%. Five stocks, including Hongda Shares, Chuanjinno, Yuntu Holdings, and Hengbang Shares, have gained over 30%, while Chengxing Shares, Yake Technology, Guangdong-Guiyang Shares, and Xingfa Group have increased by more than 20% year-to-date.

Data from Eastmoney Choice shows that since February, nine phosphate chemical concept stocks have experienced net financing inflows. Notably, Tianji Shares attracted 146 million yuan in financing, Stanley received about 30.49 million yuan from leveraged funds, and Xingfa Group and Huilong Shares each saw net financing exceeding 20 million yuan.

Stanley is a leading enterprise in compound fertilizers. A previous research report by Global Fortune Financial indicated that through capacity layout, channel deepening, and product advantages, the company is poised to further increase its market share in the next 1-2 years.

Xingfa Group is a global enterprise focused on fine phosphate chemicals and committed to green circular development. According to its 2025 semi-annual report, the company has about 395 million tons of phosphate ore reserves with mining rights, a designed capacity of 5.85 million tons per year, and approximately 410 million tons of phosphate resources (at equity stage) under exploration and transfer to mining.

(Article source: Eastmoney Research Center)