Berezniki, Russia — Uralkali CEO Dmitry Opisov told analysts last week that the company now expects 2015 annual production to be 10.4-10.8 million mt, up from earlier estimates of 10.2 million mt. He said the flooding at the Solikamsk-2 mine has stabilized, with the average inflow now at 300 cubic meters per hour, versus 820 cubic meters in February. Uralkali called the first quarter “challenging,” due to inventory destocking, low crop prices, and the strength of U.S. dollar. For the year, Uralkali continues to see global potash shipments down, at 58-59 million mt from 2014’s 63 million mt. While the company expects shipments to China and India to be up, to date, it sees significant decreases to the U.S., Brazil, Southeast Asia, and Europe. It also blames lower prices on Belarussian Potash Co., saying prices in the U.S. fell some $50/mt. BPC imports started arriving in January. Uralkali’s first-quarter sales volumes were 2.53 million mt, down from the year-ago 3.05 million mt, with production at 2.70 million, down from 2.93 million mt. Export volumes were 2.05 million mt, down from 2.56 million mt, with average export prices up 19 percent, to $256/mt FCA from the year-ago $215/mt. Domestic volumes were almost level at 480,000 mt versus 490,000 mt. First-quarter revenues were $720 million, down from $862 million.
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