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 ?xml:namespace>
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
($1 = €0.67)
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