Global potash fertilizer giant wants to reduce production

Global Post reported on January 26th that in order to cope with the decline in potash prices caused by declining demand in major markets such as China and India, the global potash fertilizer giant plans to proactively reduce production to ensure that its earnings are not affected.

OAO Uralkali, the largest potash producer in Russia, said this week that it intends to reduce annual production by 8% to 10.5 million tons. The company believes that prices are more important than production. Canada’s Potash Corp., the world’s number one potash producer in Saskatchewan, Canada, also announced that it will reduce production in some of the mines. The above two giants accounted for 37% of the global supply of potash, and their actions will have an impact on global potash market prices.

The global price of potash had rushed to a record high of nearly US$1,000/ton in 2008, but it plunged to US$300/ton due to the financial crisis a few months later. At present, the price of potash fertilizer is basically maintained at the level of 550 US dollars / ton.

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