05 January 2011 16:57 [Source: ICIS news]
“The market environment remains robust driven by increasingly strong demand prospects that are underpinned by profitable farm economics worldwide and a lean global distribution pipeline,” Mosaic chief executive Jim Prokopanko said in a conference call with investors.
On Tuesday, Mosaic reported net earnings for the second quarter ended 30 November of $1.0bn (€750m), an increase of 928% from $107.8m in net earnings in the second quarter of 2009.
Mosaic had net sales in its second fiscal quarter of $2.7bn, an increase from $1.7bn in the same period a year earlier.
The second-quarter results included an after-tax gain of $570m on the sale of Mosaic’s interest in Brazilian fertilizer maker Fosfertil.
Mosaic said strong demand growth was expected to keep phosphate and potash markets tight until significant new capacity comes on line.
“Even with new capacity, global demand growth will keep supply and demand in balance in the coming years,” Prokopanko said.
Mosaic estimated that global phosphate shipments will increase to 59m-61m tonnes in 2011, up from 57m tonnes in 2010.
In India, diammonium phosphate (DAP) use is expected to increase 5% in 2011-2012 based on the increasingly positive outlook for agricultural commodity prices, Mosaic said.
Mosaic estimated that global potash shipments will climb to 53m-56m tonnes in 2011, up from 49.7m tonnes in 2010.
Brazilian imports of potash were projected to increase to about 6.5m-7m tonnes in 2011, while China’s imports were estimated to reach 6m-6.5m tonnes.
Mosaic said India’s appetite for potash was expected to reach a record level in 2011 in the 6m-6.5m tonne range.
“Underlying fundamentals for the crop nutrient industry are exceptional, and outstanding farm economics worldwide support increased crop nutrient use,” Prokopanko said.
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