Seeking Alpha

China gets stake in Uralkali to secure potash supply, could weaken Canpotex

  • Potash stocks are lower after China acquired a 12.5% stake in Russian potash producer Uralkali (URALL.PK -1.4%), a deal that could put new pressure on prices and reduce the chances of the Russia-Belarus cartel being revived.
  • The deal could strengthen China's position in negotiations with other producers; China imports ~6M metric tons/year of potash, more than 10% of global demand, and the Chinese potash price is considered the global benchmark.
  • The deal also could give Uralkali an upper hand in selling potash in the Chinese market ahead of Canpotex, the North American potash cartel owned by Potash (POT -1.4%), Mosaic (MOS -1.4%) and Agrium (AGU -0.8%).
  • ETFs: MOO, CROP, PAGG, VEGI.
Comments (2)
  • mikeehlert
    , contributor
    Comments (27) | Send Message
     
    This actually is a real concern for this segment. Have a look at what China and Russia have done to the aluminum marker - $AA
    24 Sep 2013, 11:19 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5596) | Send Message
     
    If you are talking aluminum, one should look at how JPM and Goldman Sachs manipulated the market right here in the US.
    24 Sep 2013, 12:07 PM Reply Like
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