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Uralkali ready to cut potash output to protect 45% price gain

January 26/2012

(bloomberg) -- OAO Uralkali (URKA), Russias biggest fertilizer maker, is ready to cut production to prevent potash prices from falling after Potash Corp. of Saskatchewan Inc. announced reductions this year.

Our strategy is that price is much more important than volumes, Chief Financial Officer Victor Belyakov said. Its a strategy for most of the big players in the market. We usually cut some production to come up with a fair price.

Russian producers and those in Canada, like Saskatoon, Saskatchewan-based Potash Corp., account for about 65 percent of global output, said Mark Connelly, a New York-based analyst at Credit Agricole Securities USA Inc.

Suppliers are seeking to protect a 45 percent recovery in benchmark U.S. Midwest potash prices since July 2010.

If the Canadian and Russian producers are aggressive in matching supply and demand, it shouldnt matter very much what other producers do, Connelly said .

Author:Anna Larionova
Category:General News
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