U.S. Gulf: Potash barge prices continued to slip last week, with new spot trades reported as low as $300/st FOB, making a range of $300-$310/st FOB. While some argued that barges may have found a floor, others said a floor was nowhere in sight, as plenty of product is available and buyers, sensing a weak market, are in no mood to pay higher prices.
Eastern Cornbelt: Potash remained at a flat $350-$357/st FOB in the Eastern Cornbelt, with the upper end for white granular tons.
Western Cornbelt: Sources quoted the regional potash market at $345-$357/st FOB in the Western Cornbelt, with the low reported on a spot basis in the Iowa market. The upper end of the regional range was reported for white granular and soluble potash.
California: Potash pricing in California was down from last report. Sources quoted the market at $474-$480/st FOB in the state, roughly $20/st below last report, while delivered potash had fallen by a similar amount, to $475-$485/st in the state, depending on location.
The sulfate of potash (SOP) market continued to be quoted at $660-$670/st FOB in California. Crystalline potassium nitrate remained at $950/st FOB for bulk and $1,020/st FOB for bags.
Pacific Northwest: Potash pricing continued to fall in the Pacific Northwest, with minimal movement reported. Sources quoted the market as low as $430-$435/st DEL into Washington and Oregon, while pricing FOB Utah mines was reported in the $375-$385/st range. At the upper end of the regional range, sources tagged the potash market at $435-$445/st FOB or DEL last week.
K-Mag was reported at $451-$471/st FOB in the Pacific Northwest, down $10/st from last report.
Western Canada: The potash market FOB Saskatchewan mines to customers in Western Canada was reported at $349/mt FOB, down significantly from pricing levels reported last fall. Warehouse potash prices in the region were down as well, with sources quoting a range of $360-$380/mt FOB, depending on location.
China: Uralkali announced on Jan. 20 that its wholly-owned subsidiary, Uralkali Trading, has reached an agreement for first-half 2014 potash deliveries to China with a buying consortium headed by CNAMPGC, one of the major Chinese agrochemical corporations. The contract is for 700,000 mt at $305/mt, and the contract period runs through June 30, 2014.
That level reflects a $95/mt drop from the first-half 2013 contract price of $400/mt reached between China and major potash producers in January 2013 (GM Jan. 7, Jan. 21, 2013).
“The contracts between Uralkali and the Chinese companies clearly testify to growing demand and the beginning of market recovery,” said Oleg Petrov, Uralkali director for sales and marketing. “The terms of the agreement with our Chinese partners are mutually beneficial and serve the interests of our consumers, agricultural producers of the PRC.”
There was no word at press time from other major potash vendors, including Canpotex, but they traditionally match the price achieved by the first seller.
Belarus: Belarusian President Alexander Lukashenko told local media last week that the country lost some $1.5-$1.7 billion due to the potash conflict it had with Uralkali.