Uralkali sees 2014 potash demand up
In the US, fall season was rather slow due to late harvest and unfavourable weather conditions. Potash prices are quoted at 340-3506 per tonne FOB NOLA. As far as US potash demand prospects in 2014 are concerned, high crop output in the US in 2013 means that a large amount of fertilisers has been pulled out of the ground and there is a need for replenishment. Therefore, very strong demand is expected next year.
In Europe, fall application was rather slow due to late harvest and market uncertainty. Now the region is off-season, with suppliers making deliveries to NPK and SOP producers. A strong market rebound with solid demand for both straight and compound fertilisers is anticipated in Q1 2014.
In Russia, nine months’ sales saw a slight decrease year-on-year, with 1.4 million tonnes sold in January-September 2013 compared to 1.6 million tonnes in the same period last year. Demand was challenged by the change in the pricing system following Russia’s entry into the WTO, which abolished subsidised prices for Russian agricultural producers and premiums to Russian NPK producers for the volumes meant for the Russian market. Granular potash deliveries in Russia in January-September more than doubled year-on-year following the change in the Company’s sales policy.
In September Uralkali agreed KCl prices with Russian compound fertiliser (NPK) producers. In accordance with the agreed terms, starting from October 2013, KCl price is reset every month in compliance with the principles of price determination set by the Russian Federal Antimonopoly Service (FAS) for nondiscriminatory access to potash acquisition. Previously, the price for Russian consumers had been calculated on a quarterly basis.