Potash prices are likely to increase as miners reduce
production.
Uralkali, the world’s largest potash producer, says it will
reduce production by eight per cent to increase prices.
That comes after a partnership with Belarus broke down and
with it the joint attempts to maximize profits.
The two became competitors, driving down prices.
Potash Corporation has also reduced production at its mines,
most of them in Saskatchewan. But it did say earlier this week that it will
continue mining at its site in New Brunswick.
BHP Billiton of Australia is building a large mine in
Saskatchewan and that could, in the longer term, counter attempts by the
cartels to drive up prices.
Potash Corp., Mosaic and Agrium run an export cartel for
Canadian potash; the government allows that cartel to operate for exports, but
it’s not supposed to fix prices for Canadian customers.
