Uralkali: world potash fertilizer sales to rise

Uralkali, the world's largest potash fertilizer producer, said Wednesday it expects global potash fertilizer sales in 2012 to grow slightly to between 59 million-60 million metric tons, from the expected 58 million tons this year.

Uralkali expects farmers around the globe to stay in the black through 2012, which will fuel the on-year potash fertilizer sales growth by 1 million-2 million tons, Chief Executive Vladislav Baumgertner said on a conference call.

The company sees its own production at between 11.3 million-11.8 million tons next year, but may produce up to 12.5 million tons if market conditions are favorable, Baumgertner said. Uralkali expects to make 10.8 million-11 million tons of potash fertilizers this year.

Should the market situation deteriorate, Baumgertner said he sees both spot and contract prices staying at the current levels in 2012.

Baumgertner said Uralkali expects China to end 2011 with potash fertilizer inventories higher than usual, which will delay Uralkali's price negotiations with local producers until April or May.

Baumgertner also said the company won't cut the contract potash price for India despite a dramatic devaluation of the rupee. Uralkali previously agreed to sell potash at $490/ton to India in the period until the end of March. Russian fertilizer producer PhosAgro (PHOR.LN) said Nov. 24 it has agreed to cut prices to its Indian customers due to the recent sharp fall in the rupee's value.