Potash: a typical price war

Yves Jégourel

No 1602, Policy briefs on Trade Dynamics and Policies from Policy Center for the New South

Abstract: Along with phosphorus and nitrogen, potash constitutes one of the three nutrients used in the production of fertilizers. Although the factors that influence its demand are mostly common to other fertilizers and in large part determined by the agricultural market conditions, its supply depends on specific factors. Long known to be controlled by two production and export cartels, the potash market experienced a major change in 2013 with the end of the RussianBelarusian agreement. In a difficult economic climate, this rupture has resulted in the start of a price war, similar to what has been observed for other commodities such as iron ore.

Date: 2016-03
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