Potash Corp. of Saskatchewan Inc. said Feb. 25 that consistent with its practice of matching supply with market demand, both the Allan and Lanigan operations in Saskatchewan will curtail production for four weeks beginning March 20.
PotashCorp said it is opting to achieve these curtailments through the use of maintenance shutdowns, which do not require temporary workforce layoffs. It estimates the curtailments will reduce 2016 production by approximately 400,000 mt.
Just last month, PotashCorp indefinitely suspended its new $2.2 billion Picadilly, N.B., potash operations, with a workforce reduction of up to 430 people (GM Jan. 22, p. 1). The 1.2 million mt/y operation had been on inventory adjustment shutdown since the end of November, and as a result, the suspension was effective immediately.
Industry sources also reported this week that PotashCorp had cut U.S. river and inland warehouse pricing to $240-$245/st FOB, down approximately $20/st.
Canpotex Ltd., the export marketer for the Saskatchewan potash producers, on Feb. 22 announced a sharp cut in its potash export sales volumes. The company said it has reduced its export sales volumes by 1 million mt in the first quarter of this year, and by a minimum of 500,000 mt in the second quarter of 2016 due to the unsatisfactory demand and prices existing in current overseas export markets. It said it will continue to monitor overseas market conditions to determine if a further reduction in planned sales volumes will be implemented in the second half of 2016.