OTCPK:PTAUF - Post by User
Post by
dogger2on Jan 07, 2010 1:05pm
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Post# 16650367
China standoff
China standoffGlobe says Potash Corp., Agrium in China standoff
2010-01-07 07:44 ET - In the News
Also In the News (C-AGU) Agrium Inc
The Globe and Mail reports in its Thursday edition that North America's largest potash producers are in a standoff with China, refusing to meet demands for lower prices because they expect a rebound in the depressed fertilizer market. The Globe's Paul Waldie writes investors in companies such as Mosaic Co., Potash Corp. of Saskatchewan and Agrium have been watching closely for a "floor price" that would be set in a Chinese contract after European producers reached a deal with China at about half the previous price. "We're not prepared to meet the kind of price expectation the Chinese have," Jim Prokopanko, chief executive officer of Minnesota-based Mosaic told analysts Wednesday. "We are able to find customers willing to pay higher prices and there's no point in lowering it for the Chinese." Vancouver-based Canpotex, an international marketing agency that represents Mosaic, Potash and Agrium, broke off talks with the Chinese last month shortly after the European deal was announced at $350 (U.S.) per tonne. Canpotex's move was unusual because the North American and European groups typically work together on Chinese negotiations, with one group generally following the price set by the other.