Tel Aviv — A leading Israeli analyst has downgraded Israel Chemicals Ltd. (ICL) to market perform, citing uncertainty about demand for potash in China and India and the state of the global fertilizer market. Clal Finance and Brokerage analyst Jonathan Kreizman noted that the macroeconomic environment and the weakness of the potash market are causing the first major cracks in potash prices. He added that they have already led to lower prices, even in strong markets such as Brazil. The report said that the biggest importers, China and India, are again putting off orders, and that the environment in other markets is showing weakness. Regarding production volumes, Kreizman predicts they will be largely unchanged, though the average per ton price will drop to $461/mt. He is looking for a strong – but temporary – third quarter for ICL, based largely on strong Indian demand.
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