Potash Prices: Will Marketing Cooperatives Rebalance the Market? | Economic Calendar

These marketing cooperatives negotiated “fair” prices for potash and would hold out on sales until sellers would be willing to pay an adequate amount. This strategy was undertaken so potash producers could get a good price for potash, which is particularly expensive to mine. Buyers, on the other hand, said the market was a monopoly.

When BPC disbanded to pursue a “volume over pricing” sales strategy, potash prices collapsed. While there were other factors behind the slump, it was the catalyst. There is even the opinion that potash prices have no hope of ever climbing to their former peak now that the market’s supply chain has changed.

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Potash Prices: Will Marketing Cooperatives Rebalance the Market?.