Last week Russian potash giant Uralkali announced its separation from the European marketing arm for potash, Belarusian Potash Company (BPC). This move had a quick and somewhat devastating impact on the potash market sending share prices of giants like Potash Corp of Saskatchewan (TSX:POT) and Mosaic (NYSE:MOS) tumbling with the fear that the potash market as we have come to know it is over.
For years, potash prices have been governed by two marketing firms (often referred to as cartels), Canpotex in North America and BPC in Russia, which have been controlled by a select few major producers. These companies have monopolized the market, making it fairly impossible for outsiders to influence the price of the much needed fertilizer material. Now, with BPC out of commission, it appears that the days of controlling the potash price are over for major producers. Especially with Uralkali looking to flood the market with product thereby pushing down the price.
According to BMO analyst Joel Jackson, the new and not-quite-sure-it�s-improved-yet potash market really is the �end of the potash world as we know it.�
Is it the end? Really? Click Here To Read Entire Article.
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Son principal projet en exploration est HOLBROOK en USA.