Uralkali, the world’s largest potash producer by volume, saw sales volumes fall by 6% to 8m tonnes for the first nine months of the year. The Russian producer, which exports approximately 80% of sales, cut production by 0.8m tonnes to 7.9m tonnes. The main reason for the reduction was difficult market conditions in the first half of the year caused by reduced demand and the collapse in international prices.

As a result, revenues fell by 29% to $1.7bn. Some stability has appeared in the market recently, with potash demand stabilising in the third quarter. This was as a direct result of long-term contracts between potash suppliers and Chinese and Indian importers. Uralkali assets consist of five mines and shares are traded on the Moscow Exchange.

International spot potash prices (Vancouver) have fallen by $80/t or 30% in the past 12 months. Prices fell to the lowest level in a decade as a result of the low grain, dairy and beef prices, along with China and India postponing new contracts during the summer.

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However, the dollar has also strengthened by almost 10% against the euro, going from $1.15 this time last year to $1.05 this week. As potash is normally traded in dollars, this currency headwind erodes some of the fall in prices internationally when converted into euros.