PotashCorp to temporarily shut third potash mine on weak demand

06 January 2012 16:47  [Source: ICIS news]

LONDON (ICIS)--PotashCorp will shut down its Allan potash mine in Saskatchewan for four weeks, starting next month, because of a lack of demand, the Canadian fertilizer maker said on Friday

The mine, which can produce nearly 2m tonnes of potash annually, will close from 5 February to 3 March. Operations will resume on the morning of 4 March, the company said.

This is the third shutdown announced by PotashCorp in less than a month. The company’s Rocanville mine is already closed for six weeks, from 25 December 2011 to 4 February. The Lanigan mine will shut down for eight weeks, starting 8 January 2012, and will re-open on March 3 2012.

The move to close the Allan mine is “consistent with PotashCorp’s practice of matching supply with demand,” the company said.

Extreme caution among distributors because of macroeconomic concerns, and healthy inventory levels, have hit demand in the last few months. Signs of weakness from the world’s biggest markets, China and India, also indicate that prices could fall if supply is not curtailed.

Partial rollback of prices has failed to boost demand in the US. In mid-November, PotashCorp reduced its upriver terminal prices by around $20/short ton, from $590/short ton FOB (free on board) Nola, but failed to stir up demand in the market.

For more on potash visit ICIS pricing fertilizers

By: Deepika Thapliyal
+44 208 652 3214

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