Potash producers plunge over Russian spat


Potash producers plunge in overseas trading after Russian potash producer Uralkali (URALL.PK) says it is leaving its JV with Belaruskali, accusing Belaruskali of violating the terms of their agreement. Uralkali will now export deliveries via its own Swiss-based Uralkali Trading. (statement)

On a conference call, CEO Vladislav Baumgertner said the move could trigger a drop in global potash prices to below $300/tonne in H2, from a current $400/tonne.

Uralkali and Belaruskali's JV, Belarus Potash Company (BPC), accounts for 43% of the global potash export market.

Uralkali -14.2% on the MCX. Israel Chemicals (ISCHY.PK, ISCHF.PK) -10.7% in Tel Aviv. K S AG -16% in Paris.

North American fertilizer stocks in play: POT, AGU, MOS

Comments (1)
  • bberuch
    , contributor
    Comments (314) | Send Message
     
    The only implication I can see is that one or both of these corporations are going to flood the market with potash and destroy the current potash price. If this is what they are doing I can only view it in terms like" Whom the gods would destroy, they first make mad".
    Appears they need to rethink what they are doing.
    It makes no sense to me.
    30 Jul 2013, 10:14 AM Reply Like
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