Market insights on potash

The recent decision made by Russian potash producer Uralkali in changing  its sales strategy and prediction on  a steep decline in pricing for the crop nutrient, caused a strong reaction from market traders and shake-up on potash prices.

Below is a selection of news stories published by ICIS over the last week following this big market development.

Potash markets, producers react to Uralkali export withdrawal

The decision by Russian potash producer Uralkali to withdraw from its own exports sales group and predict a steep decline in future pricing for the crop nutrient caused a strong reaction on Tuesday from market traders and uncertainty from other fertilizer producers.

Uralkali announced it decided to discontinue exports through the Belarusian Potash Company (BPC), the sales group it jointly owns with Belarus’ Belaruskali and the State Association of Belarusian Railways, and will now direct all of its export business through its Uralkali Trading division. Read more…

 

Global potash market shake-up endangers big investments: bank

Potash price falls sparked by the huge market shake-up caused by Uralkali's withdrawal from a cartel could signal the end for major potash investment projects, a bank said on Wednesday.

Among the investment plans that have been thrown into doubt was miner BHP Billiton's project to spend $14bn on creating the world's largest potash mine by 2017 in western Canada, Russia's Raiffeisenbank added. Read more…

 

 

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PotashCorp receives Canadian approval for repurchasing shares

The Toronto Stock Exchange has approved PotashCorp's share purchase programme by which up to Canadian dollars (CAD) $2bn ($1.9bn, €1.4bn) of outstanding shares will be returned to the company, the fertilizer producer announced on Wednesday.

The amount of repurchases represents 5% of PotashCorp’s outstanding common shares and will be conducted over a one-year period. Company officials said these shares will be acquired at the market price at the time of purchase, and the repurchased shares will be effectively cancelled. Read more…

 

Demise of potash oligopoly could hit K+S earnings hard: analyst

The exit of Russia’s Uralkali from the Belarusian Potash Company (BPC) potash export group could lead to a big fall in earnings for Germany-based global fertilizer and salt products producer K+S Group, a Wall Street research firm said on Thursday.

 

While Uralkali’s withdrawal from the BPC partnership it ran with fellow potash producer Belaruskali – which puts an end to the BPC/Canadian Potash Exporters (Canpotex) oligopoly that has around 70% of the $20bn (€15bn) world potash market – is a “good, rational business decision”, it could hit K+S earnings hard, Bernstein Research said. Read more…

 

 

 

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