Linked In
News In
Linked In

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Brics lining up to support phosphate prices, says PhosAgro

Twitter Linkedin

PhosAgro flagged conditions "supportive" for phosphate prices as, unveiling a jump in profits, it highlighted the potential for helpful dynamics not just from India, but the other Bric countries too - Brazil, China and Russia.

The Russia-based group underlined the improved prospects for India, the top phosphate importer, that it stressed on Thursday, when unveiling a contract with state-run Indian Potash to supply 1.35m tonnes of fertilizers between 2015-2018.

"We are seeing substantial improvements in India," said Andrey Guryev, the PhosAgro chairman and chief executive.

India's imports of diammonium phosphate, or DAP, a major form of the fertilizer, which have "improved dramatically already" this year may reach 5.5m-6m tonnes over 2015 as a whole, up from the "very weak purchases" last year of about 3.5m tonnes.

"Strong pricing environment"

However, PhosAgro flagged other reasons too for what it called a "strong phosphate pricing environment", with Russia potentially to see "solid" fertilizer demand, thanks to a government far support programmes and signs of broader recovery evident in the reviving rouble.

The rouble has recovered some 30% against the dollar over the past four months.

Brazilian demand faced a seasonal increase, with PhosAgro noting "significantly higher activity" in this market over the past month.

Meanwhile, on the supply side, Chinese phosphate exports, undermined early in the year by a "focus on" domestic demand, may remain curtailed thanks to a government drive to improve the efficiency of the country's fertilizer industry.

The measures "may result in continued declines in [phosphate] exports from China as a result of the closure of old and inefficient production units, as well as higher domestic use of better-quality fertilizers", the company said.

Revenues, earnings up

"Looking ahead, I believe supply-demand fundamentals will be supportive of DAP prices," Mr Guryev said.

DAP prices, as measured in the key Tampa export market, averaged $483 a tonne in the January-to-March period, up from $459 a tonne the quarter before.

The comments came as PhosAgrop unveiled earnings of 14.2bn roubles ($228m) for the quarter, up from 1.9bn roubles ($55m) a year before, on revenues up 71% at 50.2bn roubles.

Mr Guryev said that the performance, "the best quarterly results PhosAgro has achieved since my appointment as chief executive", would allow an increase in the group's dividend payout ratio.

The group on Thursday unveiled a dividend of 48 roubles per share, or 16 roubles per depositary receipt.

PhosAgro depositary receipts stood 1.9% higher at $13.15 in afternoon deals in London.


Twitter Linkedin
Related Stories

Festive staff shortages 'likely' as British growers cut ties with UK supermarkets

Faced with mounting concerns over labour shortages and fears they may not be able to fulfil retailer contracts, some British growers have sought to cut ties with UK supermarkets in favour of companies elsewhere in Europe.

Hard Brexit to have 'catastrophic' effect on European meat industry; new report

A hard Brexit will have a ‘catastrophic impact’ on the European meat industry, according to a report published by Europe’s meat industry body, UECBV, as the UK and EU continue negotiations.

Manufacturers stockpile agrochemicals in bid to keep post-Brexit prices down for farmers

Manufacturers of crop protection products are stockpiling agrochemicals in warehouses in a bid to keep input costs down for farmers after Brexit, according to the chief executive of the Crop Protection Association, Sarah Mukherjee.

Dairy groups sidestep shockwaves from GDT price slump

Indeed, shares in the likes of A2 and Beston soar. Still, that does not mean there are no losers from the dairy price falls...
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069