(Reuters) – Canada’s Nutrien (NYSE:) Ltd, the world’s largest fertilizer producer, said on Wednesday it plans to increase potassium production by nearly 1 million tons this year to about 15 million tons in response to supply uncertainty from Eastern Europe.
Potassium is an important input required for the production of nitrogen fertilizers, and Russia and Belarus are the second and third largest producers of the raw material in the world after Canada.
Potassium prices have soared since economic sanctions were imposed on Russia after the invasion of Ukraine. Belarus, Russia’s ally, is also subject to European and US sanctions that have curtailed potassium exports.
Nutrien said the additional volume of potash is expected to be produced in the second half of the year.
Meanwhile, the Canadian Pacific (NYSE:) Railway, which transports potash fertilizers to the United States, has sent a lockout to its workers after talks with a union over wages and other issues fell through, a move that disrupted the supply of the product.
A shutdown at the rail company could have “serious consequences” for the transportation of potassium to ports for shipment to offshore buyers, Natashia Stinka, a spokeswoman for Canpotex Ltd, a company owned by Nutrien and Mosaic Co (NYSE:) said. , previously said .Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data.
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