Potash, Agrium benefit from Silvinit hitch - RBC

09 November 2007 18:22  [Source: ICIS news]

TORONTO (ICIS news)--Potash Corporation of Saskatchewan (PotashCorp) and Agrium stand to benefit from potash supply disruptions at Russia’s Silvinit, RBC Capital Markets said on Friday in raising its estimates for the two Canadian fertilizer majors.

 

RBC raised its 2008 earnings per share (EPS) estimate for Agrium by 27 cents, to $3.47, and for PotashCorp by 46 cents, to $5.40.

 

The supply disruptions at Silvinit, the world’s fifth largest potash maker, were resulting in higher potash prices, RBC said.

 

The analysts pointed to a price hike announced by Belarussian Potash Company (BPC) for Southeast Asia and Brazil, and a price increase announced by PotashCorp for North America.

 

Canpotex - the potash export marketing venture between Agrium, PotashCorp and Mosaic- would likely match BPC's price hikes for Southeast Asia and Brazil, and Agrium was expected to follow PotashCorp in raising North America prices, the analysts said.

 

($1 = €0.68)

By: Stefan Baumgarten
+1 713 525 2653

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