After a record year in 2011, which saw the industry getting back to pre-crisis levels, the potash market started to slow down once again during the beginning of 2012. This was influenced by the European debt crisis, the slowdown in China, the downgrade of the US debt, and the depreciation of the rupee against the US dollar.
In addition, industry-wide potash sales were impacted by India’s request to delay shipments of contracted quantities, delays in the signing of H1 2012 supply contracts with Chinese customers, high inventories in the US, extreme weather events in some markets, and the lack of early orders being placed by customers in Europe.
These factors were among the many reasons to convince market players to remain cautious. In their latest financial results, the world leading potash producers described a general prudence during Q1 in the industry which has still vivid memories...