Rus News Journal

It is less, yes it is better

Uralkaly in December 2012 - March, 2013 will work with 50 - percentage loading

Uralkaly which month cannot already agree about new contracts with the largest consumers — India and China that is why it is compelled to reduce manufacture. Yesterday the company declared that from December till April of next year half of its capacities will stand idle.

In reply to falling of world demand Uralkaly wants to reduce twice manufacture in December 2012 — March, 2013, the general director of the company Vladislav Baumgertner has told in interview to Reuters agency. the Part of our labour collective will be directed to idle time: concentrating factories will work with 50 - percentage loading, mines will be partially deduced in idle time — he has informed. Curtailment of production is connected first of all with absence of the Chinese and Indian contracts and simultaneous seasonal reduction of demand for potash fertilizers — have explained daily in the company.

Total capacity bereznikovskoj and Solikamsk platforms makes 13 million t hlorkalija in a year, but in the first quarter 2013 Uralkaly instead of 3,2 million t will make only 1,6 million t production. The plan for December, 2012 makes 0,4 million t. However, in Uralkalii are assured that 2 million t which the market will receive less, will lead to decrease in the saved up stocks in China.

In the beginning of 2012 Uralkaly also worked with incomplete loading (60 %) and has made all 1,9 million t hlorkalija in the first quarter that on 28 % less than total development Uralkalija and Silvinita in January — March, 2011. but in 2012 we and have not seen from Uralkalija Outstanding successes in speculative game of sellers - buyers, as a result of the company the annual forecast " was necessary to lower; — analyst IFK " reminds; Metropol Sergey Filchenkov. The unique agreement — with China, on 200 million dollars — it has been signed in March.

But Uralkaly does not lose hope. the rests in India on potassium are low, they are at normal level — about 1 million t. The Indian contract can be signed in December — Vladislav Baumgertner has told Reuters. As a last resort, have added in the company, it happens in the end of 2012 — the beginning of 2013, the contract with China is expected in the first quarter 2013 - go. Whether

can Uralkaly to win back following the results of all 2013 of loss from the compelled idle time in the first quarter, analysts while find it difficult to predict. But all - taki stocks of India and China decrease, and new contracts, most likely, will be signed with great volumes, believes g - n Filchenkov. Itself Uralkaly it is completely confident market restoration by the first quarter 2013 end. The high prices for agricultural products and the low warehouse rests of potassium on spotovyh the markets will cause demand splash in Brazil and the USA in January, have added in the company. And after signing of the contract with India the sharp increase in demand in Jugo - East Asia is expected.

Investors maneuver Uralkalija yet have not estimated. Yesterday the company has fallen in price in London on 1,28 %.