Belarus president boosts ICL with cartel revival talk
Israel Chemicals Photo: Eyal Yizhar
Elbit Systems awarded US Army Iron Fist deal
Elbit Systems awarded US Army Iron Fist deal
Belarus is willing to renew cooperation with Russian fertilizer giant Uralkali.
Fertilizer company share prices shot up today on global markets. The Israel Chemicals (TASE: ICL: NYSE: ICL) share price finished the day up 6% on the Tel Aviv Stock Exchange (TASE), following foreign media reports that Belarus President Alexander Lukashenko had signaled his willingness to renew the global potash cartel headed by Russian fertilizer corporation Uralkali and Belarussian fertilizer company BPC, provided that the country's interests were maintained. Lukashenko made his decision after consulting with the head of the Belarussian national potash company.
The global potash corporation, composed of Uralkali and BPC, artificially manipulated potash prices for many years, and leading companies in the sector benefited from high profit margins. This state of affairs came to an end in July 2013, however, after then-Uralkali CEO Vladislav Baumgertner announced that Uralkali was withdrawing from the potash cartel. One month later, Baumgertner was arrested on a visit to Belarus for "abuse of power for personal profit" in his job as chairman of the monitoring committee in the potash cartel.
Since the global cartel was dissolved, potash prices have plunged, together with the profits and share prices of fertilizer companies. Today's report gives those companies hope of an increase in potash prices.
Published by Globes [online], Israel Business News - www.globes-online.com - on March 9, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017
Israel Chemicals Photo: Eyal Yizhar