Russia's Uralkali expects 2012 potash yield down

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Publish time: 14th March, 2012      Source: www.cnchemicals.com
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March 14, 2012

   

   

Russia''s Uralkali expects 2012 potash yield down

   

   

   

Russia''s Uralkali expects its potash output to edge down to about 10.5 million tonnes this year from 10.8 million tonnes in 2011 on lower demand.

   

   

"We are trying to achieve this volume, but all the same, in April we won''t be at full capacity," sales and marketing director Oleg Petrov said at a news briefing.

   

   

First quarter volumes are off about 40% from last year, he added, while also forecasting that the company''s mines will reach full capacity in July-August.

   

   

Markets have softened recently, with Potash Corp, the largest producer, saying last month that it had extended temporary shutdowns at two of its largest potash mines in a battle to reduce inventories that are rising due to weak demand for the crop nutrient.

   

   

Sources in India, the world''s number two buyer, told Reuters last week that they deferred deliveries of over two million tonnes.

   

   

Petrov said that major buyer Indian Potash Limited (IPL) has pushed back delivery of 600,000-700,000 tonnes of Uralkali''s potash.

   

   

"That is the volume that has to be delivered by end March," he said.

   

   

Negotiations with Chinese buyers are ongoing, and Petrov said he expects new delivery deals to be signed in April-May.

   

   

Uralkali also hopes to raise prices this year, but Petrov declined to provide any specific figures.

   

   

"There is the desire to raise (prices), we''ll see how it turns out," he said.

   

   

Tight supplies and strong demand from China and India boosted potash prices to above US$1,000 a tonne in 2008, from below US$150 through the first half of last decade.

   

   

Potash in the spot market is currently around US$500 per tonne.