Even if potash prices rebound it will be a while yet before potash companies can start experiencing growth again.
That from Professor of Strategy at the University of Saskatchewan Brooke Dobni who says a full rebound likely won’t be until 2018.Dobni says potash supply is where the problem lies right now.Potash prices have plummeted over the last eight years, falling from a peak of about US$900 per tonne in 2008 to around US$200 today, forcing companies with operations in the province to slash production and lay off employees.
Dobni notes that lead companies like PotashCorp to commit to the shut down of the Allan mine and Mosaic to suspend operations at Colonsay and temporarily lay off about 330 workers amid extremely weak prices.
That said, he adds there is a lot of hope moving forward. The Lanigan mine shutdown has been deferred to summer 2017 and production at Mosaic’s Colonsay potash mine is expected to resume next month.