Russian Potash Cartel Collapses

Farmers around the world may see a significant fall in potash fertiliser prises.  This comes after the breakup of one of the two main cartels that control the global market.  Russia’s Uralkali has pulled out of the Belarus Potash Corporation (BPC), a joint venture with Belaruskali.  BPC controlled around 40% of the global potash market.  A North American cartel, Cantopex, is the other big player in the industry.   Uralkali has stated it plans to increase production and lower prices.  It has the capacity to undercut other suppliers as it is one of the lowest-cost potash producers in the world.  Industry analysts believe the move could see global potash prices fall by 25% (to around $300 a tonne).

London listed shares in Uralkali dropped by 25%, with shares in Sirius Minerals, the company currently seeking permission to build a potash mine in North Yorkshire, falling by 13%.