U.S. Gulf: Potash barge prices were called $300-$310/st FOB. Some argued that a floor has been found now that business has been done with China, so there was no need to further lower prices. Others also argued that inland demand was starting to pick up, so that was another reason not to lower prices.
Eastern Cornbelt: Potash was steady at $350-$357/st FOB in the Eastern Cornbelt, with the upper end for white granular tons.
Western Cornbelt: The Western Cornbelt potash market was tagged at $345-$357/st FOB, with the low reported in Iowa on a spot basis. The upper end of the regional range was reported for white granular and soluble potash.
Northern Plains: The potash market remained at a flat $350/st FOB the Twin Cities. Delivered potash in the Dakotas ranged from $345-$375/st, with the market FOB Saskatchewan mines quoted in the $310-$325/st range after netbacks, depending on grade.
Northeast: The potash market remained at $350/st FOB Baltimore and East Liverpool for red granular tons, with white granular at the $357/st FOB level.
Eastern Canada: Eastern Canada sources quoted the dealer market for potash at the $415/mt level FOB regional warehouses, down $30/mt from fall pricing levels. One source commented, however, that the lower price had finally spurred some recent buying activity in the region.
The sulfate of potash market was quoted at $745-$750/mt FOB in Eastern Canada, down slightly from last report.
The K-Mag market remained at $535-$550/mt FOB in the region.
China: Canpotex Ltd. said Jan. 24 that it has reached agreement with Sinochem Fertilizer Macao Commercial Offshore Ltd. for the supply of 700,000 mt of potash to China during the first half of 2014. It said the new contract is priced at current and competitive market levels.
“We are very pleased to sign a supply contract with our long-term Chinese customer, and to continue our history of being a leading supplier to this important market,” said Steven Dechka, Canpotex president and CEO. “We look forward to meeting China’s future growing potash needs in collaboration with our Chinese partner.”
Uralkali said 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).
On Jan. 28, Arab Potash Co. said that it has agreed with Sinochem Macau on the supply of 300,000 m potash to China for the first half of 2014. Likewise, it said the terms and conditions of this agreement are in line with current market prices and terms in China. This comes as part of the long-term agreement between the two sides signed in Beijing last year.
Analysts honed onto the fact that both Canpotex and Uralkali were only taking 700,000 mt of business in the first half each, compared to the year-ago 1 million mt each. However, PotashCorp last week responded that it was encouraged that China concluded business early in the year and expected it would eventually take 1 million mt from Canpotex. Likewise, PotashCorp CEO Bill Doyle said the price was a reasonable price from which the company could recover.