Update Yara International (YARIY.PK)

Do Norwegian’s grin? Surely that was a trickle of a smile at Yara International’s (YARIY.PK)  annual update for investors on December 10.

The Norwegian fertilizer company reported that the nitrogen fertilizer market was headed for demand-driven price increases in the first half of 2010. Urea supply, a major form of nitrogen fertilizer, should remain tight in 2010 with only three projects likely to come on line. Supply (ex-China) in 2010 will increase by 3%, according to Deutsche Bank, while demand will climb 5%, the bank projects. Chinese exports are likely to remain limited in 2010 as higher production costs limit the competitiveness of Chinese urea. Yara International plants ran at about 63% of capacity in 2009 and these scenarios should result in a pickup to near 80% of capacity.

Time to up my targt price, I believe. Read more