Uralkali foresees demand upturn, in Brazil and elsewhere
MOSCOW. Sept 10 (Interfax) - Although the global potash market is currently recalibrating, demand is starting to recover in a number of countries, particularly Brazil, Oleg Petrov, the director of sales and marketing at Uralkali , told Interfax.
"Today both the potash sector and buyers are passing through a reassessment phase, analyzing the changing realities, but in several markets we are seeing the transition to demand recovery. This means Brazil first and foremost. We believe that all markets will eventually emerge from the reassessment phase and enter a phase of normal, healthy operations," Petrov said.
From the sales standpoint, the company saw no substantial decline in potash prices in the month since it changed its sales strategy.
"We exported the entire volume we had targeted: about 800,000 tonnes on all markets. Sales and shipments proceeded as planned, without a single disruption. We did not see a substantial reduction in prices. Overall, we are pleased with the results," he said.
The sales outlook is promising, he said. "A host of markets are as active as before. I already mentioned Brazil: we are expecting heavy demand there. In addition, the season in America is beginning. We reckon that demand in India will also increase. I believe markets in Southeast Asia are going to pick up. From the standpoint of volumes, the market situation will be good. From the standpoint of price: we will be monitoring the situation. I do not rule out some volatility, since all producers watching the conflict between Uralkali and Belaruskali are going to be energized. But there probably won't be any dramatic occurrences on the market," Petrov said.
However, he said, the 17%-18% devaluation of the rupee in recent months has put pressure on importers in India.
