POTASH PRICE RISES MORE THAN 300%
April 17th, 2008Via: Canada.com:
Potash Corp. of Saskatchewan Inc. said Wednesday that the marketing company for Saskatchewan potash producers and a leading fertilizer company in China have agreed to set potash pricing this year at about $576 US a tonne, some $400 higher than last year.
“Significantly higher potash prices and extraordinarily tight supply have become much more firmly entrenched since China’s previous contract was signed 14 months ago,” said Potash chief executive Bill Doyle.
Saskatchewan’s offshore marketing company, Canpotex Ltd., is jointly owned by Potash, Agrium Inc. and Mosaic Co., all of which have potash operations in Saskatchewan.
As millions of Chinese join the middle class, their diets are changing to include meat and dairy products. This has in turn spurred demand for grains to feed livestock. As grain production rises, so does demand for fertilizer and the potash used to make it.
The new price for potash shipped to China will rise to about $576 per tonne at the Port of Vancouver, said Potash director of investor relations Denita Stann.
Research Credit: GP
