The U.S. Court of Appeals for the Seventh Circuit has sent a potash antitrust case against major global producers, Minn-Chem Inc. v. Agrium Inc., back for trial before the U.S. District Court for the Northern District of Illinois, Eastern Division. In an 8-0 decision issued June 27, the court reversed its own two-judge panel, which had earlier decided that the complaint failed to meet the requirements of the Foreign Trade Antitrust Improvements Act of 1982. The court said the district court correctly ruled that the complaint does state a claim under federal antitrust laws. While ruling that the case could proceed, the lower court had allowed the appeal. The defendants—Potash Corp. of Saskatchewan Inc., The Mosaic Co., Agrium Inc., Uralkali, Belaruskali, Silvinit and IPC, are accused of price-fixing. The plaintiffs, U.S. potash buyers, alleged that the defendants, which produce 71 percent of the world’s potash, initiated a cartel which beginning in mid-2003 drove prices up some 600 percent by 2008.

Potash Corp. of Saskatchewan Inc. quickly responded to news that the U.S. Court of Appeals for the Seventh Circuit has sent a potash antitrust case against major global producers, Minn-Chem Inc. v. Agrium Inc., back to the U.S. District Court for the Northern District of Illinois, Eastern Division. The company said the matter may not necessarily go to trial, as an earlier Green Markets headline indicated; that it would first go to discovery. Ultimately, if it can get through the discovery phase, and any motions in the meantime, it will go to trial.

“The company has a policy of strict compliance with antitrust and competition laws wherever it does business,” a company spokesman told Green Markets. “PotashCorp intends to vigorously defend itself against these claims which it considers to be without foundation.”

Indeed, the Court of Appeals said it was not making a final decision, that discovery will have to take place as well as a lower court decision. However, in the court’s 8-0 decision, it said that the evidence before it was sufficient to send it back to the lower court. “The inference from these allegations is not just plausible but compelling that the cartel meant to, and did in fact, keep prices artificially high in the United States,” said the court.

Agrium Inc. said it was still awaiting word from its attorneys. Other defendants have yet to respond.

The defendants—Potash Corp. of Saskatchewan Inc., The Mosaic Co., Agrium Inc., Uralkali, Belaruskali, Silvinit and IPC, are accused of price-fixing. The plaintiffs, U.S. potash buyers, alleged that the defendants, which produce 71 percent of the world’s potash, initiated a cartel which beginning in mid-2003 drove prices up some 600 percent by 2008.

Indonesia’s Pusri closed its auction for granular and prilled urea June 22. Bids in both auctions indicated buyers are still looking for bargains. And while buyers appeared only interested in the granular product, they do not seem willing to buy at any price.

In the end Universal Harvester was awarded 10,000 mt of the 30,000 mt offered at the Owner Expected price of $431/mt FOB.

The bidding stalled at $403/mt FOB until the last minute when Universal boosted its bid. The last 10 minutes of the bidding – until Universal moved to take an award – showed prices moving lethargically from $390/mt FOB to $403/mt FOB.

The last time Pusri made an award, the winning granular price was $535/mt FOB.

No one wanted to pay the OE Price for the prilled product. At $465/mt FOB, the Pusri expectation was too high for the bidders. Sources say that amount was also too high for the market.

The highest bid for the prilled material came from Feitra Limited at $396/mt FOB.

The winning bid in April for prills was $527/mt FOB.

The bids in both auctions confirmed, for many, the continued softness of the urea market. The winning price in the granular tender indicated, to some that Universal was desperate to pick up a cargo. The refusal to move into the $400s/mt FOB for the prilled also indicated buyers still don’t think the floor has been reached for the urea market.

TCP tender falls short of fulfilling demand.

The Trading Corporation of Pakistan closed its June 25 tender still short of the tonnage it was looking for, but at least it will pay $100/mt less than it did a month ago.
TCP closed its previous tender with an award to Gavilon at $522.86/mt CFR for 100,000 mt.

Sources say the latest award to Transammonia is based on its offer of $411.77/mt CFR for 100,000 mt. Trammo offered an additional 100,000 mt as an option. It is unclear to source if TCP can accept the optional tons and that Trammo would accept the bid if made.

If the additional tons are not awarded, sources expect to see TCP issue another tender soon for 100,000 mt.

In April TCP received orders from the government to import 300,000 mt to ensure enough urea for the current application season and enough to jump start the next season. The rules under which TCP must operate mean the closing date of the tender will be one month from the day it is announced.

Local media report the domestic urea producers will continue to argue that if the national government were to provide the producers with the natural gas supplies they were initially promised, they would be able to supply the country’s urea needs at a lower price.

It is with great sadness that PotashCorp reported today that an accident at its Allan mine on Monday June 25 resulted in fatal injuries to one of its employees. The individual, a 28-year-old man, was working underground at the mine when the accident occurred. His name has not been released. Emergency responders were dispatched immediately but they were not able to resuscitate him.

“Our thoughts and our deepest sympathy are with the family, friends and co-workers of this young man,” said Garth Moore, President, PCS Potash. “There is nothing we place a higher priority on at our company than safety.” An investigation is being conducted by the company in cooperation with the provincial Mine Safety Unit.