Huatai Securities: The situation in Iran may disrupt the supply of some chemicals.

Huatai Securities pointed out that if the tension in Iran escalates further, it may trigger market concerns about the country and the region's oil supply risks, leading to a high volatility phase in oil prices. In addition, Iran is an important global supplier of urea and methanol. If this conflict continues for an extended period, it may disrupt the country's natural gas supply, leading to a reduction in chemical raw materials and causing localized shortages of urea and methanol globally. Domestic production companies with cost reduction and production capacity enhancement capabilities, as well as increased natural gas business, large urea production capacity, and high methanol exports, may benefit.