Economists Fear Over-Investment in Potash Industry

The Leader Post reported that some economists fear that the robust potash industry in Canada is leading to over-investment.

As quoted in the market report:

In recent years, the world market for potash has been between 50 and 60 MMT. Russia and Belarus have had 30 per cent. Uralkali is expanding capacity by 6 MMT. Farmers around the world hope the excess capacity will result in price competition. Already, China and India have managed to reduce prices to around $400 per tonne. Further reductions can be expected, which will put a strain on Saskatchewan mines. BHP has pledged it will not be part of Canpotex and will engage in price competition to gain its share of the market. In a few years, the government of Saskatchewan will again have to face the problem of overinvestment in the potash industry.

To view the whole Leader Post report, click here.