14 June 2012 15:25 [Source: ICIS news]
LONDON (ICIS)--Uralkali expects to reach an annual production capacity of 13m tonnes of potassium chloride during the second half of 2012, as demand improves, the Russian potash producer said on Thursday.
Uralkali said its operational capability by the end of 2012 will be up by 1.5m tonnes/year to 13m tonnes/year, an increase from 11.5m tonnes/year at the end of last year, due to the completion of its Berezniki-4 expansion.
The company said that following a cautious start to the year, driven by higher-than-usual stocks in the key markets and continuing concerns surrounding the volatile macroeconomic environment, potash demand started to recover in March 2012.
“At the end of the first quarter of 2012 the major suppliers signed contracts with ?xml:namespace>
The company said that at the beginning of the second quarter the market returned to normal following strong demand in
“As a result, potash inventories depleted across spring application in all major markets excluding
“Taking into account softer first-quarter global sales, we have adjusted our 2012 consumption forecast to 54m–56m tonnes. With anticipated global potash deliveries of 51m–53m tonnes, we expect that at year-end  potash inventories in major markets should be lower compared to the previous year,” the company said.
Uralkali head of sales and marketing Oleg Petrov said potash prices have proved to be resilient despite ongoing turbulence in financial markets.
“Market instability related to
($1 = €0.79)
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