The “Potash blog” editor, Robin Bromby, posted insight into the potash fertilizer industry situation as of June 29, including current and projected price increases.
“Potash consumers should be bracing themselves right now. More price rises are being predicted between now and December. Canada’s Scotiabank reports that spot prices ex-Vancouver rose from an average of US$$445 a tonne in May to $US485/tonne in June. Canpotex, which sells for the largest North American producers, has moved considerable volumes to Brazil and South-east Asia recently at higher prices. Scotiabank says another increase in price is being considered for the late summer. As yet, there is no news on second-half contracts with India which objects to hikes imposed by Canpotex and Belarusian Potash Co.
“Meanwhile, Reuters is reporting spot potash prices could reach US$600/tonne by the end of the year, quoting the the chief executive of Russian potash producer Uralkali, Vladislav Baumgertner, at an investment forum in Moscow. He said that demand for potash is strong and major miners are operating at full capacity.
“And the Abu Dhabi newspaper The National says shares in Jordan's Arab Potash headed for its highest level in a month after Goldman Sachs raised its potash price forecasts by between six per cent and 9 per cent for the next year.
“Jordan is among five countries that control 90 per cent of the world's phosphate and potash reserves. Arab Potash, which has the capacity to produce 2.45 million tonnes per year, has secured contracts with India and China to deliver 1.8 million tonnes to each country over the next three years, the newspaper said. The potash is produced from the Dead Sea. The border with Israel goes down the middle of the Dead Sea.”
The Potash blog news can be reached by clicking here.