Delay in China Potash Contracts Could Signal Trouble For Producers

The Globe and Mail reported that delays in securing contracts in China could signal troubles for the potash industry.
As quoted in the publication:

Producers from Canada, Russia and Belarus have yet to sign 2016 contracts with Chinese importers. The price China pays for potash is considered a key benchmark for the commodity and deals in past years have often been concluded in January, setting the tone for the year ahead.
Last year, when negotiations dragged into March, it was considered a worrisome portent for potash producers. This year’s even longer delay underscores the growing strains on the industry.
Swelling supply of the crop nutrient and slumping demand continue to drag down spot prices, while ample customer inventories provide little reason for Chinese buyers to rush into a contract.

Click here for the full article.