Caution from one of the world’s largest potash producers is likely to temper 2013 potash demand figures, but will not significantly change projected growth for the industry as a whole.
Articles Tagged "potash corporation of saskatchewan"
Project costs, labor disputes and concerns regarding "national interest" are front and center in the potash market as companies reassess opportunities.
Potash Corporation of Saskatchewan's bid for Israel Chemicals could have big implications for the potash markets even beyond the borders of Canada and Israel.
Despite uncertainty over the stability of the global economic recovery, the fertilizer market is holding up very well, and will be buoyed over the coming years by supply shortages.
While recapping their record-setting Q2 2011 earnings, Potash Corporation CEO Bill Doyle said that the potash industry is entering a period of “unprecedented opportunity.”
Potash has risen from relative obscurity, to one of the most talked about commodities in the global market, thanks to its application as a fertilizer. As the world’s population increases, and the amount of arable land shrinks, the necessity to get the most food production from a finite land base has resulted in a skyrocketing interest, and demand for potash.
Shrinking potash inventories are providing a clear signal that the market can bear another price increase. Potash inventories held by North American producers dropped by 183,000 tonnes in March, leaving inventories at 1.8 million tonnes, 26 percent below the five-year average.
The stocks of potash producers are predicted to outshine those of more nitrogen focused companies, due to what brokerage firm Goldman Sachs calls “peaking corn prices.” In a statement issued this past Monday, Goldman Sachs (NYSE:GS) noted that the current corn price of $6 to $7 per bushel is unsustainable.
The merger between Russian potash miners Uralkali (LON:URKA) and Silvinit has been put on hold after an arbitration court in Russia agreed to hear minority shareholder Acron’s complaints.
The share prices of many potash and phosphate producers are battle-scarred this week, as instability in the Middle East and Africa has sent markets on a tailspin. One of the key markets impacted by the turmoil is the grain markets.