Russia’s Uralkali expects strong global demand for potash in Q2

11 April 2012 13:35  [Source: ICIS news]

LONDON (ICIS)--Uralkali expects strong global demand for potash in the second quarter of 2012, the Russian potash producer said on Wednesday.

Uralkali said that in March 2012 major potash suppliers signed Q2 contracts with China, increasing demand in the quarter.

Strong crop prices allowed suppliers to maintain the price for the second quarter of 2012 deliveries at $470/tonne [€357/tonne], setting the floor price for the global market and prompting more active demand worldwide, it added.

The company said it anticipates strong buyer activity in China will result in increased potash demand in 2012. It added that it estimates the global market to be fairly balanced this year.

Uralkali said world potash market volumes are estimated to have increased to a record 57m tonnes of potassium chloride in 2011.

However, the company said that after the record growth and strong price levels through January–September 2011, the potash industry witnessed a slowdown in the fourth quarter of 2011, following concerns about possible decline across agricultural commodities and a deterioration in macroeconomic conditions.

Earlier on Wednesday, Uralkali reported a 64% rise in net profit (excluding unusual and nonrecurring transactions) in 2011, while sales increased 6% to 10.7m tonnes.

($1 = €0.76)

By: Leigh Stringer
+44 208 652 3214

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