Some people can move markets with a word. Vladislav Baumgertner, chief executive of potash producer Uralkali, caused upheaval in the world of fertilisers yesterday with his announcement that his company would quit the marketing cartel in which it participates. The move sent the share prices of potash producers tumbling. PotashCorp, K+S and Mosaic all fell about 20 per cent.
Uralkali intends to market potash on its own and focus on expanding volumes. That is dreadful news for an industry that has traditionally managed prices by tightly controlling supply. Uralkali left the BPC export association having complained that it was in “deadlock”, blaming Belaruskali, another participant, for making deliveries outside their joint venture. By marketing potash directly, Mr Baumgertner said prices could fall from $400/tonne to below $300/tonne. A few years ago prices neared $900/tonne.