15 July 2013 23:23 [Source: ICIS news]
HOUSTON (ICIS)--Production of potash in June was down 28% from May and 11% year over year according to data released on Monday by PotashCorp.
The Canadian fertilizer company also reported that inventory for North American producers declined by 230,514 tonnes in June to end at 2.698m tonnes, but overall the stockpile of the vital crop nutrient was 14% above the five-year average.
In terms of production, there was a 28% dip from the previous month to 1.404m tonnes, a decline of 11% from 2012.
There likely will be a more significant drop going forward, as PotashCorp announced earlier this month it would be undergoing summer maintenance at six of its mining operations within in Canada.
For exports, PotashCorp said numbers for June were down by 6% from May to 1.001m tonnes and were 9% lower year over year.
For domestic sales the figures showed a 62% decline from the month earlier, down to 400,000 tonnes, which represents a 20% decrease from the same month in 2012. Part of the monthly difference can be attributed to the completion of the majority of the US planting season by late May and the subsequent expiration of the fertilizer application cycle.
In June, PotashCorp chief financial officer Wayne Brownlee said it did not appear that the slow pace of planting had caused any deferrals in terms of potash demand. He further stated that the outlook for potash remained healthy, as the company was anticipating more demand from China coming in the second half of 2013. At the time PotashCorp was estimating demand from that market to be in the range of 10.5m-11m tons.
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