Fertilizer stocks have been on a tear as crop prices have surged and investors fear the global potash inventory crunch could get worse in the wake of Russia’s attack on Ukraine.
As the world’s biggest potash producer, Nutrien Ltd. could have a chance to capitalize on growth opportunities in the market, but analysts agree it could take time for that to materialize.
“They do have a large amount of idle potash capacity they could bring to market that they have not done yet. The thing is, it will require them to hire a bunch more people and get some new equipment,” said Steven Hansen, managing director and equity analyst at Raymond James, in a phone interview.
“[Nutrien is], really, the only player that has idle or excess capacity still available globally. So they will play a really important role in, I’ll say, backfilling with the supply that’s been taken out of the market in the eastern hemisphere.”
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