02 February 2012 19:09 [Source: ICIS news]
(adds updates throughout)
HOUSTON (ICIS)--Canadian-based fertilizer producer PotashCorp confirmed on Thursday that it settled its first quarter sulphur contracts with its suppliers at $172/long ton (€131/long ton) delivered ?xml:namespace>
This represents a $48/long ton decrease, or 22%, from the fourth quarter 2011 price, which was rolled over from the second and third quarters of 2011.
The settlement follows Mosaic’s settlement of its sulphur contracts at the same level.
The decrease fell within expectations of a $20-60/long ton drop, prompted by declining global sulphur prices due to weaker downstream demand for phosphates.
Mosaic announced last month it will cut its first quarter di-ammonium phosphate (DAP) and mono-ammonium phosphate (MAP) production by up to 250,000 tonnes in the first quarter.
The quantity is equivalent to around 125,000 tonnes of sulphur, meaning that the producer will have to reduce its sulphur spot purchases and fill its inventory space to allow for continual off-take of contract quantities.
($1 = €0.76)
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