09 December 2011 13:13 [Source: ICIS news]
LONDON (ICIS)--Potash Corporation of ?xml:namespace>
The move is “consistent with PotashCorp’s practice of matching supply with demand”, a statement issued by the company said.
The Lanigan mine will be closed for eight weeks, starting 8 January 2012, and will re-open on March 3 2012. The Rocanville mine will be shut for six weeks, from 25 December 2011 to 4 February 2012.
Production capacity at Lanigan is 3.6m tonnes/year, and at Rocanville is at 2.8m tonnes/year.
The shutdowns is an indication that demand in the region has failed to pick up as expected. Buyers have been cautious because of the global economic situation and they also believe the price of potash is high.
In mid-November, PotashCorp reduced its upriver terminal prices by around $20/short ton, from $590/short ton FOB (free on board) Nola in a bid to stir up demand. However, market activity has remained weak.
The company recently settled a legal dispute with Mosaic over a tolling arrangement under which Mosaic supplies potash to PotashCorp from a Canadian mine. PotashCorp said under the settlement Mosaic will deliver the balance of the potash tonnes owed to PotashCorp for the 2011 and 2012 calendar years.
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections