Weaker Demand for Chinese Fertilizer Expected to Impact Migao’s Second Quarter Results

Migao Corporation (TSX:MGO), a China-based leading specialty potash fertilizer producer, announced today that it is feeling the negative impacts of weaker demand for fertilizers in China.

As quoted in the press release:

Declining prices for fertilizers in China as reflected in world-wide pricing trends have also resulted, as expected and previously communicated to shareholders, in decreased margins. The Company typically trades potash opportunistically when market conditions provide for profitable transactions. Migao does not expect the sale of potash to contribute significantly to total revenue during the second quarter.

Migao’s CEO, Liu Guoca, said:

Contract negotiations with new and recurring major customers are being signed and will result in improved production levels of potassium sulphate, potassium nitrate and our specialty compound fertilizers compared to the first half of fiscal 2013,”