We’ve just released the latest quarterly update to Integer’s Outlook for Potash – a Service which provides a supply/demand balance to give you a true insight into the industry, whether you’re an investor, engineer, new entrant, or an acquisitor.
Key findings from the update:
- Potash demand growth was slower in Q1 2012 than forecast at the end of Q4 2011, with a generally negative impact on producers’ financials. Indeed, many of the industry’s major suppliers responded by cutting production.
- The resulting fall in supply supported prices despite the backdrop of weak demand, with prices remaining similar to Q4 2011 levels. This protected revenues across the sector to some extent given sales volume drops.
- In India, importers delayed potash deliveries in Q1 2012 because of the rupee devaluing against the US dollar.
- The outlook for 2012 still looks positive, with most producers anticipating demand over the year at a similar level to that of 2011.
- Work began on two major projects in early 2012 – Intrepid Potash’s Carlsbad mine and K+S’s Legacy mine in Saskatchewan. Potash Corp, Mosaic, Uralkali, SQM and Qinghai Salt Lake’s brownfield expansion projects are also on-going.
How will potash pricing develop in the medium term?
Sign up to the Service to find out – with an annual printed report and three, quarterly market updates, a subscription helps you:
- Discover production costs and margins – achieved for producers and the whole potash industry.
- Benchmark company’s cost and financial position – against competitors and analyse the real picture of each company’s financial performance.
- Learn how the industry will evolve – and detect trends that will enhance your business strategy.
Early hiccups, but stronger Q2 demand leaves producers bullish for 2012
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