SQM Surges as Rival Uralkali Seen Raising Prices

Soc. Quimica y Minera de Chile SA, Chile’s largest fertilizer producer, jumped the most in four months on speculation it will raise potash prices amid signs competitor OAO Uralkali plans increases for Brazil and China.

Shares of the company also known as SQM jumped 8.2 percent to 15,041 pesos at 3:34 p.m. in Santiago, its biggest surge since Sept. 9 on a closing basis. The stock is trading at its highest since Oct. 3. SQM was the best performer today on Chile’s benchmark IPSA index, which rose 1.1 percent.

“SQM is rising as its potash products generally command a premium to the potash Uralkali sells,” Leonor Skewes, an equity analyst at BICE Inversiones, said by phone from Santiago. “Investors are speculating that the prices will be confirmed.”

Berezniki, Russia-based Uralkali (URKA) is seeking to raise prices in Brazil for granular potash available in March by $40 per ton to $350, according to research published yesterday by Fertecon. The company is also looking to raise the price of potash it sells to Chinese customers to $330 per ton, according to separate research from Argus FMB Potash earlier this week. The prices are not final, the reports said.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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