Salt Lake, one of China’s larger producers of fertilizer, said that it has kept prices stable, but that ongoing Covid restrictions have affected its sales.
In a call with investors on Thursday, the company said that it was targeting potash production at 5.75 million tons in 2022.
Sales of fertilizer have been impacted by repeated Covid outbreaks and the related disruptions to logistics.
The company noted that sales were “gradually recovering” and it was increasing its sales efforts in an attempt to reach its annual targets.
Fertilizer sales have been volatile in China over the past year. High energy prices in late 2021 caused fertilizer prices to spike higher and farmers reduced their usage. Prices of urea fertilizer have rallied this week but remain the in middle of their trading range for 2022. January Zhengzhou urea futures were up nearly 2% on Friday to close at <>
Share in Salt Lake Co spiked higher on Friday, hitting the upper limit of 10%. The company’s shares have been falling in recent months. After hitting 35.13 yuan per share on July 7th, the stock fell and hit a low of 21.35 on November 1st.
In its announcement, the company also said it made new plans to ensure energy supplies. The company said it was participating in government auctions for natural gas, built storage tanks for liquified natural gas, and that these changes would better insulate it from sharp swings in energy prices.