Potash Corp of Saskatchewan Inc. said on Thursday that it will curtail production at two Canadian mines for four weeks, as excessive supplies pressure prices.
The company said it would curtail output at its Allan and Lanigan mines in the province of Saskatchewan for four weeks, starting March 20. The move is expected to reduce 2016 production by 400,000 tonnes, the company said. Potash Corp said last month that it expected to sell 8.3 million to 9.1 million tonnes of potash this year.
The shutdowns involve time for maintenance and do not require layoffs, Potash said in a statement.
The move comes after Potash Corp last month closed its newest potash mine in New Brunswick, citing weak market conditions.
Prices of the crop nutrient have fallen as crop prices soften and demand slackens in key buying countries such as Brazil and India.
It is unlikely that the latest curtailments will stabilize potash prices, and Potash Corp's decision may not be material if the company is simply advancing its usual summer maintenance period, said BMO analyst Joel Jackson in a note.