Potash shares drop over end of cartel

AFP-JIJI

Shares in the world’s leading potash firms plunged Tuesday after Russia’s top producer of the fertilizer announced it was cutting links with its Belarusian partner and triggered fears of a price crash.

The announcement by Uralkali was seen by the market as representing an end to the cartel-like system that has supported the global potash market and heralding a possible crash in prices of the mineral.

Uralkali itself said it expected that increased competition in the market and warned the potash price could potentially fall to $300 (€225.6) per ton by the end of the year from the current $400.