Fertilizer Markets Highlights, 18 / September /2011

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Cameron Flowers
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Haifa Chemicals Ltd., Info & Knowhow Center Fertilizer Markets Highlights, 18 / September /2011 Collected and edited by Yoav Ronen & Gad Shahar Commodity Price (US$ / ) Price vs.

1 Haifa Chemicals Ltd., Info & Knowhow Center Fertilizer Markets Highlights, 18 / September /2011 Collected and edited by Yoav Ronen & Gad Shahar Commodity Price (US$ / ) Price vs. 2 weeks ago Urea FOB prilled bulk, Black Sea % Urea FOB granular bulk, Egypt % Ammonia FOB, Black Sea % Ammonium nitrate, FOB bulk Black Sea % Phosphate rock bulk, FOB, Morocco (65-75% BPL) Phosphoric acid, FOB, North Africa, US$/P 2 O DAP FOB bulk, Morocco MOP CFR bulk, China, standard MOP CFR bulk, South-east Asia, standard MOP CFR bulk, India, standard (180 days) SOP NW Europe, standard ( /mt) 0.0 In a few sentences Nitrogen (Urea) Short-term pricing for prills and granular remains dominated by market bulls. Uncertainty on a direction to be chosen by Chinese authorities on the duration of low-tax export windows prevails. Phosphate The end result of Asian and Indian subcontinent buyers taking control of most of the end-user spot demand is that global prices are becoming more rational, with the west of Suez price tags declining somewhat, while east of Suez gaining some value. Potash The price increase tendency at the potash market continues. Potash Current business Highlights of the week: K+S Kali announces 12 pt increase in Europe First sale at $535/$550 cfr SE Asia made by IPC... and another said to be close by Canpotex. Canpotex may divert MOP cargo to India -1-

2 in order to step up deliveries to Indian buyers. ICL sale to Taiwan for Sept shipment at $510 cfr. ICL to accelerate negs with Israel govt. on salt harvest costs. GSL announces $30 p.s.t. increase for SOP from 1 Oct. Update on granular MOP prices in the US domestic market. K+S Kali has been informing its customers of its new prices for granular MOP and granular SOP. The prices are for all new business with immediate effect Granular MOP will increase by 12 pt from the current 363 level to 375 pt cif/cfr seaport for bigger quantities. Prices by truck in small lots would be another 7-12 pt. K+S Kali intends to apply similar price increases for standard MOP and standard SOP for fourth-quarter 2011, when talks begin later this month with NPK manufacturers. Such an increase for standard MOP would take it from around in the third quarter of 2011 to pt cfr in the fourth quarter. Likewise standard SOP would go from pt cfr to pt cfr. Canpotex has indicated its price initiative for Q4 business in the region in line with BPC s recent price hike target of $25/mt. The price increase would take standard MOP and granular grade to $530/mt CFR for and $555/mt CFR respectively, and it is expected to be accepted in the region. Potash companies' news ICL The Deputy Attorney General for Economics and Fiscal Affairs Adv. Avi Licht has submitted an opinion to the Ministry of Finance that argues ICL s subsidiary Dead Sea Works should pay the major part of the costs of the salt harvesting and shoreline protection that is necessary. The rest would be borne by the state, some hotels along the shoreline and the regional authority. As the cost is estimated to be around 2.5 billion NIS (Shekels) which is equivalent to $688 million, it has had an adverse impact on ICL s share price. Some previous reports even put the cost as high as 7 billion NIS which is $1.88 billion. However, the Deputy Attorney General for Economics and Fiscal Affairs is part of the state and might be expected to rule on that side. ICL s official response is given under the Company News section below. Negotiations are now to be accelerated. Migao reported revenues of $100.5 million (RMB million) for the first quarter ended June 30, 2011 as compared to revenues of $66.3 million (RMB million) for the three-month period ended June 30, For the quarter, the Company reported net income of $7.8 million or $0.15 per basic share as compared to net income of $8.8 million or $0.17 per basic share. The revenue improvement is attributed to increased sales of potassium chloride. The decrease in net income was primarily a result of decreased gross profit margin related to the increased volume of potassium chloride sales and further impacted by maintenance shutdown programs of the Company's higher margin core fertilizers. New Projects Australia: On 13 September, Potash West announced that it has achieved encouraging results from the initial processing testwork aimed at unlocking the potassium value in its large Dandaragan Trough glauconite holdings in Western Australia. Initial scoping tests, using high-intensity magnets, show a strong recovery of glauconite from the quartz and other minor minerals. This will allow a low cost upgrading close to the deposit. On 14 September Potash West followed with the announcement that it has extended its exploration tenure in the Dandaragan Trough from an area of 2,107 square kilometres (km²) to 2,905km². The new exploration areas increase the Company s control over the glauconitic prospective Dandaragan Trough to an estimated 80% of the available ground in the region. United Kingdom: On 13 September, Sirius Minerals provided an update on drilling and planning application approvals for its York Potash Project. Following the completion of the top-hole rig activity on Hole 1 (Pasture Beck), the larger coring rig arrived at Pasture Beck on 5 September and, having been successfully installed, drilling has now begun. It is expected to reach the evaporite minerals and commence coring in approximately ten days. Separately, top-hole drilling at Hole 2 (Howlett Hall) commenced on 2 September and drilling depths now exceed 100 meters. The Company has now secured six planning application approvals to drill exploratory holes -2-

3 within the National Park. Additional applications are expected to be submitted to the National Park within the next month. UREA Highlights AFT books Yuzhnyy prills at $513/mt FOB for October basis sight LC payment in-lieu of prepay. Egyptian producers hold off on additional sales tenders. Pusri to sell via tender next week. US barge prices at New Orleans remain firm at or above $512/st FOB. Indian Subcontinent purchasing likely to accelerate into October. Chinese export volumes decline as sellers remain concerned over possible changes in low-tax export windows. Short-term outlook While heading for a lengthy period of perceived oversupply as the fourth quarter progresses, short-term pricing for prills and granular remains dominated by market bulls. Short term forecast: -3-

RUSSIAN FERTILIZER group EuroChem is believed to be in the final stages of a deal to acquire the BASF nitrogen fertilizer assets up for sale in Antwerp, Belgium, and the German group s 50% stake in

4 RUSSIAN FERTILIZER group EuroChem is believed to be in the final stages of a deal to acquire the BASF nitrogen fertilizer assets up for sale in Antwerp, Belgium, and the German group s 50% stake in the PEC-Rhin joint venture in Ottmarsheim, France, Phosphates Highlights Indian spot buyers continue to buy DAP above benchmark; Pakistani demand returns, with DAP sales at $ /mt CFR; Ethiopia s AISE/MoARD likely to issue DAP tender next week; Technical glitches prevent further DAP production ramp-up in Tunisia. Short-term outlook The divide in the global market east and west of Suez likely will continue at least until Brazil and Argentina decide to make further purchases. The end result of Asian and Indian subcontinent buyers taking control of most of the end-user spot demand is that global prices are becoming more rational, with the west of Suez price tags declining somewhat, while east of Suez gaining some value. Short Term Forecast -4-

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Yara International ASA First Quarter results 2013

Yara International ASA First Quarter results 213 22 April 213 1 Summary first quarter Strong results with stable margins Strong cash flow Fertilizer deliveries close to last year despite late spring Record