disconnect so far between the actions and the words
Price drop seen unlikely to close higher-cost mines: PotashCorp
https://dmnbtext.com/research/home?u=00732737-779e-49a0-9621-9888cec8bce0&docid=147874423134165231
"But we certainly haven't seen anybody in the marketplace force a low price to achieve higher volume. There's been a bit of a disconnect so far between the actions and the words."
If the idea was to drive prices low enough to force rivals to shed production capacity for the crop nutrient, it is not likely to work, PotashCorp chief financial officer Wayne Brownlee said at the Credit Suisse Global Chemical and Ag Science conference in New York. Companies with high-cost mines may operate in a negative cash-flow position temporarily, or idle mines until prices improve, but they are unlikely to abandon them, Brownlee said. "If you underestimate the staying power of that capacity, then you're probably making a mistake."
Uralkali and Potash Corp are considered by analysts to be low-cost producers, while European mines operated by K+S AG and Israel Chemicals are at the high end, along with U.S.-based Intrepid Potash.