OAO Uralkali rose the most in four months as researchers Fertecon Ltd. and Argus FMB Potash said the world’s largest potash producer seeks to raise prices for Brazil and China.
The stock jumped 6.7 percent to 179.35 rubles by the close in Moscow, the most since Sept. 9. The number of shares traded was equivalent to almost 4.3 times the three-month daily average, data compiled by Bloomberg show. Global depositary receipts increased 5.1 percent to $27.22 by 3:30 p.m. in London.
Uralkali Trading, the potash producer’s trading arm, wants $350 per ton for granular potash available in March from the largest Brazilian buyers, according to research released yesterday by Fertecon. That’s an increase of as much as $40 per ton, according to the researcher. The company is also seeking $330 per ton for the first half from China, Argus FMB Potash said this week. China has not accepted the proposal, it said. Chinese buyers are offering $280 per ton, Fertecon said.
The prices are not final and “the rise of potash company stocks, including Uralkali, is driven by simple speculation,” Oleg Petropavlovskiy, a BCS Financial Group analyst, said in a note today. Petropavlovskiy has a sell recommendation on Uralkali.
Uralkali’s press-service declined to comment on price talks when contacted today.