Skip to main content

The Globe and Mail

The most important issue facing the potash industry

A Potash Corp. operation.

Handout

Globe editors have posted this research report with permission of  Odlum Brown Ltd.. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following text is excerpted from the report:

In recent weeks, a considerable amount of investor attention has been focused on the public break-up of the potash marketing arrangement between Russia's Uralkali and Belarus' Belaruskali. With the termination of this arrangement, Uralkali has stated plans to ramp up its potash production next year and issued a warning that potash prices could drop significantly as a result. Faced with headlines screaming about the end of the global "potash cartel," investors headed for the exits and the valuations of global potash companies declined accordingly.

While we are not downplaying the potential fallout from the abandonment of the joint venture that is commonly referred to as BPC (Belarusian Potash Company), we believe the real issue facing the potash industry is much more fundamental in nature. Specifically, global potash demand has not grown as expected, which is creating a number of issues for the industry.

Story continues below advertisement

In our opinion, many of the issues currently facing the potash industry could be easily resolved by modest demand growth over time.

Read the full report here.

Read other reports here.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨