Potash price volatility expected |
| CBC.ca - Jan 17, 2012 |
Canada's potash industry could be in for a rocky few years as supply and demand are unlikely to move up and down in unison over the next decade, a report said Tuesday.
Research firm DBRS Ltd. said potash companies are likely to see strong demand over the long term, but profitability may not follow a straight line higher.
Potash is the common name for a variety of water-soluble mineral salts that provide potassium to agricultural crops. It's become one of the world's most sough-after fertilizers due to its ability to increase yields, or, the amount of food produced per acre. Spot prices for potash have more than doubled since 2007.
The potash craze has gotten so feverish that PotashCorp of Saskatchewan — the world's largest supplier — was briefly the most valuable company in Canada last year. (Australia-based BHP Billiton tried to take over PotashCorp in 2010 for $40 billion, but was ultimately unsuccessful as Ottawa rejected the bid as not being of net benefit to Canada.)
Read Full Article from CBC.ca
- Posted: 2012-01-17 18:02:40
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