Following the Russian trend
Potash Corp./Saskatchewan (USA) (NYSE:POT), the world’s biggest producer of fertilizers, has the largest incentive to follow Uralkali’s strategy and go for volumes at the expense of price stability. The main reason is that a relevant amount of the company’s capacity additions are expected to come online over the next two years. Even when North American demand for Potash Corp./Saskatchewan (USA) (NYSE:POT) is expected to grow by 25% year-over-year and international demand should also grow strongly, I believe that it is highly unlikely the company will be able to operate at full capacity, particularly as the company’s new projects ramp up during the next two years.