X
<

PotashCorp: 3Q16 Shows Investors Will Need to Be Patient

PART:
1 2 3 4 5 6 7 8 9
Part 4
PotashCorp: 3Q16 Shows Investors Will Need to Be Patient PART 4 OF 9

PotashCorp Gets Hit by Lower Potash Selling Prices in 3Q16

Potash selling prices

Earlier in this series, we saw that PotashCorp’s (POT) Potash segment’s shipments increased by 16% during 3Q16. However, this surge was dampened by falling potash prices. Lower prices caused potash sales to fall as much as 31%, excluding freight costs, YOY (year-over-year).

PotashCorp Gets Hit by Lower Potash Selling Prices in 3Q16

Interested in POT? Don't miss the next report.

Receive e-mail alerts for new research on POT

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Realized prices

PotashCorp continued to face headwinds from falling potash prices. Prices for the overall potash segment averaged $150 per metric ton, 40% lower than the price of $250 per metric ton in 3Q15. Prices in North America (MXI) fell harder, by 45% YoY to $155 during the quarter. In offshore markets, average potash prices fell 38% YoY to $146 per metric ton.

These lower price realizations were also seen in the company’s Nitrogen and Phosphate segments. During its earnings call, the management noted that it will see an upswing in demand in the coming year. Most of this will come from customers delaying their purchase as they waited for prices to fall.

It is important that investors in companies such as PotashCorp, Agrium (AGU), Mosaic (MOS), and Intrepid Potash (IPI) track the price movements of fertilizers closely. We track and publish price movements weekly on our website. To learn about last week’s price movement, read Was Last Week Positive for Fertilizer Companies? Next, we’ll discuss the Nitrogen segment’s shipments.

X

Please select a profession that best describes you: