Phosphate Mining Goes Deep Sea
With advancing technology and booming world demand, phosphate production is heading offshore and into deep water.
With advancing technology and booming world demand, phosphate production is heading offshore and into deep water.
MENA phosphate producers represent more than 80 percent of world reserves. Overrun by political risks, this region will require moderating labor and wage relations between state-run producers and a politically invigorated labour force going forward.
Potash production remains stagnant as Potash Corp and Uralkali cull output in response to low farmer purchasing. However, short-term prospects look slightly positive as producers are certain global demand will pick up.
North America is an important player in phosphate ore production and refinement. With rising food prices, declining arable land and persistent emerging market demand for phosphate-based fertilizers, it will remain an important component in the phosphate game.
After closing out 2011 on a low, many are hopeful 2012 will be a year for potash and phosphate producers. But despite strong long-term fundamentals, the uncertainties of 2012 appear unlikely to offer a quick turn around in the value of potash and phosphate prices or company values.
2011 came in as a disappointment to potash and phosphate investors, who saw record prices, weak supplies and undervalued producer share prices.
Stonegate Agricom CEO Mark Ashcroft spoke about his company’s start, its current strategy, and the fundamentals of the phosphate market.
India is pushing potash and phosphate suppliers to lower fertilizer prices, citing that a weakening currency and climbing potash and phosphate prices are pushing Indian farmers out of the market.
Financial Post reported that fertilizer companies may face challenges in falling potash and phosphate prices.
The shares of fertilizer producers continue to be underpinned by the weak global macroeconomic picture, despite the bullish projections on the near and long-term outlook for the sector.
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