Potash price in bad slump

Reflecting the depressed price for potash, a loss of $103.4 million was recorded by the Potash Corp of Saskatchewan in 1986, the company’s 10th year of operation. The Crown corporation’s $810-million debt was recently written off by the Saskatchewan government. In addition to the drop in price in the Canadian market, a drastic fall in demand was experienced primarily in the heavy use areas of North America. Production by the company’s mining division increased last year over 1985, and the total volume of potash sold was up in 1986 over the previous year because of larger sales outside the North American market.

The company is not optimistic for 1987; there is a large excess in installed capacity, and the drop in demand in North America and western Europe is expected to continue because of the depressed agricultural situation. Offshore markets are expected to show a modest improvement over 1986 levels.

Potash sales in North America peaked in 1979, when more than 11 million tonnes were shipped; sales have fallen by about three million tonnes since then. A further 5%-6% drop in potash shipments in North America is expected this year.