Uralkali Hits Three-Year High as EU Lifts Dumping Measures
OAO Uralkali (URKA) climbed to the highest closing price in almost three years after European Union anti- dumping measures for Russian and Belarusian potassium chloride deliveries expired.
Shares of the world’s largest potash producer by output added 3.5 percent to 268.41 rubles at the 6:45 p.m. close in Moscow, the strongest closing level since August 2008.
The EU measures expired today after five years, European Commission spokeswoman Helene Banner said in an e-mailed response to questions. The tariffs were prolonged in 2006 to shield EU producers including K+S AG from cheaper imports. The product is a fertilizer and fertilizer ingredient.
“There is a marginally positive effect for Uralkali from the lifting of quotas that restricted Russia’s and Belarus’s access to this market,” VTB Capital analysts Elena Sakhnova and Kevin Whyte said in an e-mailed report today.
Europe represents 11 percent of the global market for potash and 1 percent of the net profit for Uralkali and OAO Silvinit, with which it is merging, VTB said.
To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
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