MOSCOW, Jul 19 (PRIME) -- Potash fertilizer prices will gradually decline in the long term, global rating agency Fitch said in a research note on Wednesday.
“Potash prices will… remain under pressure in the near term and we expect prices to trend gradually lower over the longer term, unlike for other fertilizer commodities,” it said.
A subsidy cut in India is likely to weaken demand, while new low-cost capacity is likely to come online in 2017 and 2018, putting pressure on prices, the agency added.
“A possible resumption of the cooperation agreement between Belaruskali and Uralkali, which was scrapped in 2013 triggering a drop in prices, would be positive for potash prices. A new deal between the two, and potentially EuroChem, would lead to a sharp change in our price projections.”
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