Fertilizer prices not in a 'bubble' – PotashCorp

26 November 2007 02:46  [Source: ICIS news]

TORONTO (ICIS news)--Global fertilizer prices are not in a bubble but are sustainable, driven by demand for better-diet food on the back of higher incomes in China, India and Brazil and elsewhere, a top executive of Canada's Potash Corporation of Saskatchewan (PotashCorp) said on Friday.


As long as growth in those countries and the demand for a better diet continued, pricing was sustainable, PotashCorp chief financial officer Wayne Brownlee said in a media briefing in Toronto.


Brownlee, responding to an analyst's question, denied that PotashCorp was dominating the global fertilizer market.


“We don’t control the market but we are a big player in it,” he said.


A key advantage for Saskatoon, Saskatchewan-based PotashCorp over its competitors was its ability to implement relatively inexpensive debottleneckings and expansions, Brownlee said.


Overall, the company was investing some $4.5bn (€3.0bn) to expand potash production capacity by about 6m tonnes/year over five years, he added.


Commenting on problems at Russian competitor Silvinit, Brownlee said if a crater affecting that company's rail transport became much larger over the winter global supplies would be impacted in the short term.


Silvinit accounted for about 8% of the global offshore potash market, he said, adding: “They only have one way to get their product to the market, that’s across that rail line … but to our knowledge that crater has not increased in size.”


PotashCorp’s shares closed at $108.08, up 1.8%, on Friday in New York.


($1 = €0.67)

By: Stefan Baumgarten
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly