Accident at Uralkali’s mine might improve Belaruskali’s financial performance in 2015
The situation has not changed
Due to an accident, all works at the “Solikamsk-2” mine have been suspended, and the mine is at high risk of flooding.
As a result, Uralkali’s production volumes may reduce by 20%. Meanwhile, demand on the potash market remains high, Belarus is expected to start negotiations with Chinese consumers over 2015 supplies. Prices on potash fertilisers are expected to grow, partly due to lower production by Uralkali, one of the industry’s major players. Belaruskali will improve its bargaining positions with customers. The enterprise’s new management may take into account the changing circumstances and readjust the maintenance schedule in 2014 in order to increase production.
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