# K+S: how hard will the potash downcycle bite? |

> K+S, a German potash producer, is described as the highest-cost scale producer in a potash market expected to enter a multi-year downturn. The author highlights its heavy leverage (4.5x net debt to EBITDA), negative cash flow, and a 835mm bond maturity in 2021 alongside a costly brownfield expansion in Canada.

- Date: 2019-11-06 · published 2019-11-06T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/56385-k-s-how-hard-will-the-potash-downcycle-bite
- Commodities: [Potash (KCl)](https://feedsoft.ai/c/POTASH.md)

## Why it matters

A prolonged potash price slump would pressure the highest-cost producers first, and a fall of around 15% could push output and pricing lower across the sector. Weaker potash prices lower fertilizer costs for farmers, which can support crop margins over time.

## Read by commodity

- POTASH: bearish ▼

## Sources

- rapercapital.com: https://rapercapital.com/2019/11/06/ks-how-hard-will-the-potash-downcycle-bite/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.