By Brent Bosker

Potash Corp unfazed by dip in overseas sales

Sep 21, 2013 | 8:20 AM

PotashCorp said their international buyers have been holding off on making large orders for the food nutrient since the breakup of a Russian potash cartel.

Russia's Uralkali OAO broke up Belarusian Potash Co. (BPC) in July. The Russian producer left the export partnership to drive down prices by maximizing sales volume. Potash prices were predicted to plummet by 25 per cent to less than $300 per tonne following the announcement.

Since the announcement, Bill Johnson, director of public affairs for PotashCorp said there has been some downward movement in the price of potash which he attributes to a slow down in international sales as customers hold out for better prices.

“We're seeing some movement internationally, but it has certainly slowed down. I think customers are waiting for signs of stability before they commit to large volumes.”

In the meantime, he said they're only buying what they need.

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“Everyone wants to buy at the best price and we also want to sell at the best price and that's what makes a marketplace.”

Despite about 70 per cent of sales going to overseas customers the company isn't overly concerned by the current market uncertainty.

“We don't think its going to have any significant impact on our employee base we're just throttling back our production a bit right now and we'll continue to produce what the market is buying.”

Johnson added it's too early to know what the full impact the Russian announcement will have on the marketplace.

“In this business you have to take a long term view of your marketplace and you can't get too excited about any particular month.”

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