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Who controls potash prices?
August 25, 2010 - 00:00 GMT
KEYWORDS:
BHP Billiton
,
BHP
,
potash
,
fertiliser
,
PotashCorp
,
Saskatchewan
,
K+S
,
BPC
Aggressive BHP policy will drastically change an industry reliant on delicate pricing
The move stopped the price of potash from hitting rock bottom and maintained the industry’s value through the worst period for demand in history.
It is a dip that the industry is still climbing out of and one that BHP Billiton Plc is looking to take advantage of with its lowly $39bn offer for Potash Corp. of Saskatchewan.
But comments from the world’s biggest mining company has the potash industry braced for a dramatic shift in the way it prices the potassium product and one that many believe will put its future value in jeopardy.
The Canpotex-K+S-BPC Axis
World potash export prices are led by three companies, the marketing agencies, Canpotex (Canada) and Belarusian Potash Company (BPC), and European producer, K+S AG.
Canpotex controls the biggest slice of the potash pie covering exports from Canada’s big three: Potash Corp., The Mosaic Co., and...
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Euromoney Institutional Investor PLC.
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