Potash Strike Causes Price Chaos for Industrial Users

You might not have heard this news.

About 500 miners at potash mines owned by Potash of Saskatchewan (the largest potash manufacturer in the world) went on strike a few weeks ago.

So? What’s the big deal?

Potash isn’t just used in fertilizers. The potash compounds are used for industrial uses in products like soaps and detergents.

The 500 miners have shutdown 3 facilities in Saskatoon. Just this week, Potash (POT) announced it was re-opening one of the mines by having management operate two shifts. It was unclear how much production the 2-shifts would even produce. It seemed more of a symbolism than anything.

The strike has greater implications for potash prices. Just three weeks into the strike, and already potash prices for industrial use are spiking.

Potash Becomes Scarce

Potash of Saskatchewan is putting its customers on allocation- which means that if you normally order 10 tanker trucks a week, you might get 3 under the allocation.

Try telling that to your customers who depend on the material.

It has set off a race to obtain the compound. Scarcity means prices will jump. And they are. IN some cases, prices are doubling.

Why should we care? It’s just 500 striking miners.

But there are a lot of industrial customers who are now going to be paying a lot more for potash.

That means you and I will be paying a lot more for that detergent and soap (among other things.)

Some analysts believe the strike could last for months.

All because of 500 miners in Canada. Stay tuned.