Potash industry to recover in 2013, K+S projects
The potash industry is expected to see recovery in prices in 2013, according to K+S Group, the EU’s largest potash group. Debate remains over how strong the recovery will be, but with China and India returning to purchase potash off the world market, potash producers are more optimistic.
Agrimoney.com reported, “The potash and salt group estimated world industry sales volumes of the nutrient this year at about 59 million tonnes, an outcome which would place 2013 behind only 2011, when producers moved 60.2 million tonnes.”
Like other potash producing companies, K+S agreed that a greater demand to replace crops lost to last year’s drought worldwide would increase demand for potash in 2013.
K+S Chairman of the Board of Executive Directors Norbert Steiner anticipates a positive business development for 2013: "In the Salt business unit, we expect a tangible recovery for sales volumes, if only because of the wintry weather conditions at the start of this year. In the Potash and Magnesium Products business unit, given the important agreements concluded with China and India, we expect the sales volumes to be at the high level of the previous year once again, albeit at a lower average price level. All in all, we expect the K+S Group to achieve a slight increase in revenues and operating earnings. For 2014, we also see opportunities for a slight increase in revenues and earnings in comparison to 2013," Steiner said.