STRONGER THAN EXPECTED GLOBAL POTASH SALES
STRONGER THAN EXPECTED GLOBAL POTASH SALES
Global potash shipments have rebounded significantly this year, with buyers restocking at lower prices, Mohr said.
“Global potash deliveries could be on the high side of expectations at 58 million tonnes (+7%) boosted by strong sales in North America, record fertilizer application in Brazil—linked to higher soybean plantings and robust coffee prices—and a modest pickup in demand from palm oil growers in Malaysia and Indonesia,” she predicted. “Granular potash…is in short supply, as is all grades of SOP (potassium sulphate, non-chlorine potash fertilizer).”
“The net result, producer inventories across North America fell 18% below the five-year average in June,” Mohr observed. “China will exercise a large amount of optional tonnage from Canada in 2014:H2 and Canpotex & Potash Corp have announced that they are sold out this quarter.”
However, she added, “broad-based price increases may await negotiation of a new contract price with China for early 2015—widely expected to be a 10% hike on today’s US$305 cfr China price—setting a new higher floor.”
https://www.mineweb.com/mineweb/content/en//mineweb-base-metals?oid=251472&sn=Detail