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Uralkali says may cut Q4 potash sales target by 300,000 T
Russia's Uralkali, the world's largest potash producer, said it may cut its fourth-quarter sales target by 300,000 tonnes to support demand.
Global producers of potash, a crop nutrient, have been hit by weak demand this year due to lower grain prices and the weakening of major clients' local currencies.
Uralkali is currently monitoring the market closely, the company said in an emailed statement on Monday evening, citing Vladislav Lyan, who was appointed the head of Uralkali's export sales from Nov. 1.
The company, whose sales have been matching output in recent years, narrowed its 2015 production forecast in August to 10.8 million tonnes from a previous estimate of 10.4-10.8 million tonnes.
It produced 8.7 million tonnes in January-September 2015, but in its statement on Monday it did not disclose its new production and sales forecast for this year.
Uralkali's former trading partner, Belarus Potash Company, also said in September it would cut exports by 0.5 million tonnes this year from 9 million tonnes a year earlier to support the market. Uralkali's decision to quit its trading partnership with Belarus in 2013 boosted global competition in the sector and triggered a price slump.
Uralkali added that it expected the global potash market to partially recover in 2016, when global demand would reach between 60 million and 61 million tonnes.
In August, it estimated 2015 global potash demand at 58 million tonnes, down from 63 million tonnes in 2014.
Source: AG Professional