Peak Phosphate
When applied to phosphorus, the Hubbert Peak Theory has created quite a stir in phosphate market, spawning a great deal of animated discussion and scientific analysis into the implications of peak phosphate.
When applied to phosphorus, the Hubbert Peak Theory has created quite a stir in phosphate market, spawning a great deal of animated discussion and scientific analysis into the implications of peak phosphate.
Low inventories have granted potash and phosphate producers plenty of reasons to hike prices, and purchasers have been bearing these increases, fearing that if they don’t agree to contracts in a timely manner they may miss out on securing supplies.
Potash prices were on the upswing in the latter half of 2010, and have amplified this trend so far in 2011, buoyed by strength in the grain markets.
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.
Knowing very well that economic troubles may lie ahead, executives of major fertilizer companies have stood firm in claiming that their industry is well-positioned to withstand a bumpy ride, and claim that it will take a “severe and prolonged” global recession to crimp fertilizer demand.
Bloomberg reports that OAO Uralkali (LON:URKA) reported that Belarusian Potash Co. increased prices for India by 32 percent because of a shortage of the soil nutrient.
Bloomberg reports that OAO Sberbank will receive 35 percent of Belaruskali, the Belarusian potash producer, as collateral for a $2 billion loan.
Canpotex and India have finally come to a six-month deal in which India will pay, at least at the onset, $470 per tonne including freight, for potash, approximately the same rate that China is paying.
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.”
The June vote by the US Senate to stop ethanol subsidies has raised concerns about the impact the decision may have on the potash market.
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