Recent volatility in potash prices has negatively affected industry performance.
New York, NY (PRWEB) March 13, 2015
The Mineral and Phosphate Mining industry produces a wide variety of non-metallic mineral products. It has been performing strongly in the past five years, and growth is anticipated to continue moving forward as global economic markets improve. Canada is the largest potash producer and exporter in the world, and as such, this industry plays a vital role in global agriculture markets because potash is a primary input for fertilizer manufacturers worldwide,” according to IBISWorld Industry Analyst James Crompton. In the five years to 2015, IBISWorld expects the industry to grow at an annualized rate of 1.9% to total $10.7 billion. However, recent volatility in the price of potash has negatively impacted industry performance, and revenue is anticipated to fall by 6.6% in 2015.
International trade plays a crucial role in the Mineral and Phosphate Mining industry in Canada, and IBISWorld estimates that exports account for 55.6% of industry revenue. This level has fallen from 2010, but is anticipated to increase in the next five years to 64.2%. In the five years to 2020, IBISWorld expects exports to increase at an annualized rate of 3.7% as the global population increases, thus spurring demand for agriculture products. Imports are anticipated to account for 10.3% of domestic demand in 2015, and this level has fluctuated significantly in the past five years. “Price fluctuations drastically impact the value of the industry's output, and in 2013, a temporary breakup of the Belarusian Potash Company, a major supplier on global potash markets, drove potash prices down,” says Crompton. Prices have been recovering, though volatility still remains a threat to the industry.
In the five years to 2020, IBISWorld projects that the industry will grow. Trade is forecast to remain a crucial factor in the industry's performance, but improving economic conditions around the globe are anticipated to help reduce price volatility in the industry's products. However, natural disasters can negatively affect the industry's performance, and instability could be created by the concentration of global potash supply in Canada's Canpotex Ltd., a jointly operated marketing and distribution company run by this industry's largest players, and the Belarusian Potash Company.
For more information, visit IBISWorld’s Mineral and Phosphate Mining in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry primarily engages in mining nonmetals, such as minerals and phosphate. This industry does not include coal, stone, sand, gravel, clay and ceramic mines.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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