Analyst Jeon Yu-jin said price increases have continued since the second half of 2025 as China’s potassium chloride supply tightened. She added that the Iran situation has disrupted supplies of nitrogen (N) and phosphate (P) fertilizers, expanding substitution demand for potassium (K) fertilizers. “Additional selling-price increases and higher sales volumes are expected,” she said.
Unid posted first-quarter consolidated operating profit of 25.5 billion won, up 236% from the previous quarter, but slightly below the market consensus of 27.0 billion won. Operating profit at its South Korean unit rose 200% to 12.3 billion won on higher volumes after scheduled maintenance ended and the absence of one-off costs. A weaker won also supported profitability, the report said.
Results improved sharply at the China unit. Sales volume dipped somewhat due to the Lunar New Year, but operating profit surged 373% to 12.3 billion won as caustic potash prices rose on tight potassium chloride supply and chlorine prices stayed firm. Losses in the chlorine business, a key drag in the past, are also narrowing quickly, it said.
For the second quarter, iM Securities forecast operating profit of 35.0 billion won, up 37% from the prior quarter and above the market estimate of 32.3 billion won. It expects lower volumes in South Korea due to customers adjusting operating rates, but said that would be offset by higher volumes and prices at the China unit and continued strength in chlorine prices.
The report also cited instability in the Middle East as a supportive factor. After the Iran situation, disruptions to supplies of nitrogen and phosphate fertilizers such as ammonia and urea have tightened the global fertilizer market. While not a perfect substitute, rising demand for potassium fertilizers could add to upward price pressure, it said.
* This article has been translated by AI.
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