K+S AG is slashing its full-year 2019 potash production by up to 300,000 tonnes due to a weak market driven by Chinese import restrictions on the material.
As a result, K+S's full-year EBITDA is expected to be reduced by up to €80 million, according to a Sept. 23 release. The company previously projected an annual EBITDA of €730 million to €830 million, and a sales target of 6.9 million to 7.2 million tonnes of potash.
K+S said it will revise its full-year earnings guidance when it releases its third-quarter results on Nov. 14.
Nutrien Ltd., Mosaic Co. and JSC Belaruskali have all recently flagged potash production cuts, which analysts see as an attempt to keep spot prices high as they look to secure the best possible long-term contracts with key buyers in India and China.
