德神生(shēng)物

26

2022

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01

Potash fertilizer: domestic high level, how is the international market trend?


The recent trend of the domestic potash fertilizer market has been stable compared with the previous period, and the price has been arranged at a high level. Near the end of the year, the downstream market has limited procurement of new raw materials, and the supply of potash fertilizer market is still tight. The domestic potash fertilizer market has gradually slowed down under the circumstance of high trading restrictions. What about the international market? 
The market price of potash fertilizer in some parts of the world continued to rise, only some areas fell at around US$2.5/ton. As of the close on January 13, the price of standard potassium chloride in Vancouver fell by US$2.5/ton compared with last week, at US$519-728/ton. ton, the price of standard potassium chloride in Northwest Europe and Jordan increased by 4-7.5 US dollars / ton from last week, respectively 515-759 and 561-751 US dollars / ton, and the price of standard potassium chloride in the former Soviet Union increased by 5.5 US dollars / ton , for 508-754 US dollars / ton; Israeli standard potassium chloride rose 3 US dollars / ton, 561-760 US dollars / ton.
Standard KCl for Q1 delivery in Southeast Asia was quoted below $600/t cfr, but no source was disclosed. In Malaysia, most plantations completed procurement tenders in December 2021 for delivery in the first half of 2022, with a price range mainly equivalent to US$585-590/t cfr. In the off-season, domestic demand is weak, and the price of standard potassium chloride is under pressure locally. 
The U.S. market is volatile as total U.S. potassium chloride imports continue to be above the trend in recent years, coupled with an expected increase in domestic production to ease supply concerns ahead of spring. Emerging shipping challenges from Belarus are likely to minimize further shipments to the U.S. ahead of the April 1 sanctions deadline, although the details remain unclear. U.S. granular potassium is down $5/t from a week ago on supply uncertainty and weak demand, as market participants suspect $685/t nora amid import-driven uncertainty and seasonally low demand Whether the FOB price can be achieved. 
Northwest Europe: The price of granular potassium chloride is stable at 575-600 euros/CFR. Once demand returns to the market in the first quarter, producers plan to increase prices. News that Yara stopped buying potassium chloride from BPC by April 1 echoes the strategy of many other European companies regarding EU and U.S. sanctions on Belarus that have made trade with Belarus more challenging. Other producers believe that oil prices in Europe will rise, in part because of the announcement of sanctions. Buyers are concerned that any shipments of potash from Belarus may be delayed or suspended as financial entities seeking clarification of shipment details will delay payment for shipments. Potassium sulphate prices have remained steady in light trading, but producers expect further gains, especially if potassium chloride prices continue to rise.