| Potash Corp of Sask Inc. - POT.t is the world’s largest fertilizer company by capacity, producing the three primary crop nutrients – potash (K), phosphate (P) and nitrogen (N). As the world’s leading potash producer the company is responsible for about 20 percent of global capacity.|
With operations and business interests in seven countries, Potash Corp is an international enterprise.
On October 23, 2015 the media released News
The Financial Post reports in its Friday, Oct. 23, edition that Chinese and Indian buyers of the crop fertilizer potash are seeking a cut of $10 (U.S.) to $20 (U.S.) per tonne in their next contracts with global suppliers, the chief executive officer of ICL Israel Chemicals said on Thursday. A Reuters dispatch to the Post reports that potash prices have fallen in the past year due in part to excessive mining capacity, dry weather in India that limited crop production and a new tax in china.
Contracts with China and India set a floor for sales to Brazil and the United States, which are on a spot basis. Suppliers are likely to push back on requests for bargains. ICL is the world's sixth-largest potash producer. Chinese buyers including Sinofert Holdings and Indian importers most recently agreed to pay $315 (U.S.) and $332 (U.S.) per tonne, says ICL CEO Stefan Borgas. Along with ICL, suppliers to China and India include North America's Canpotex, which represents Potash Corporation of Saskatchewan, Mosaic and Agrium, Uralkaliy, Belaruskali, K+S and Arab Potash Company.
"Post says Potash Corp. downgraded
The Financial Post reports in its Tuesday edition analysts at Macquarie do not see potash prices improving any time soon. The Post's Peter Koven, writing in Trading Desk, quotes analyst Daryna Kovalska calling for an average potash price of just $254 a tonne next year, down from more than $300 today, citing weakness in agricultural commodities and depreciating currencies in emerging markets (all figures U.S.).
Ms. Kovalska expects global potash demand to fall by 4.4 million tonnes in 2016, with the biggest declines coming in Southeast Asia, India and Brazil. China is sitting on huge potash stocks. The nightmare scenario for Potash Corp. of Saskatchewan is a collapse of the potash contract pricing system. Ms. Kovalska also pointed out that in a "post cartel" world, the producers lack the discipline to reduce supply enough to bring it in line with demand. "The outlook for the potash market remains very pessimistic," she said. Daniel Greenspan, another Macquarie analyst, downgraded Potash Corp. to underperform from neutral, and slashed his price target by 31 per cent to $22 a share. He believes the stock could perform better than expected if investors get behind Potash Corp.'s proposal to buy German rival K+S.