Uralkali squeezing Canpotex out of Chinese potash market

Financial Post | Business

The lack of potash deliveries to China by Canpotex in October shows Uralkali is squeezing Canadian potash out of this important market.

“The latest Chinese import data shows Uralkali’s shift in strategy is paying off,” said Jacob Bout, an analyst at CIBC World Markets, in reference to the Russian firm’s decision to pursue a low-price approach and end output restrictions that underpinned its former joint venture with Belaruskali.

He noted Uralkali increased its market share in China to 73% in October, up from 26% in May and 36% in June.

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This uptick followed its departure from Belarusian Potash Co. at the end of July, which was a result of a perceived loss of share in key markets.

Mr. Bout also pointed out that year-over-year exports to China have fallen in line with potash’s price decline. The pie is clearly shrinking, as imports fell 22% year over year in…

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