Uralkali Expects Potash Market Consolidation

Uralkali, which decided to break out of a trading venture with its Belarussian partner Belaruskali last week, expects a consolidation of the industry as a result of price falls, the firm's CEO told Vedomosti on Monday.

Uralkali predicted that its break-up with Belarussian Potash Company last week would cause the global potash price to fall by 25 percent to below $300 per ton in the second half of 2013. Analysts fear it could also halt global potash projects.

"Consolidation would be a logical step when the price falls to a level of marginal producers," Chief Executive Vladislav Baumgertner said.

But he said it was too early to predict possible deals as the valuation of individual companies was now unclear.