U.S. Gulf: Potash barge prices were lower at $360-$365/st FOB, with sources citing new imports as putting pressure on the market – most notably a new Israeli import – as well as three Belarusian vessels in late January and February. In total, sources estimate that as much as 150,000 mt of potash will come on the three Belarusian vessels.
As for sanctions, sources noted that there are no sanctions against Belarus per se, but against certain Belarusian individuals and companies. As long as the trades cannot be tied to those entities, the Treasury Department will likely stay out of it.
Belaruskali hit record-high output of potash fertilizers in 2014, according to the Belarusian News Agency. Some 10.33 million mt was produced in 2014, up 48 percent from 2013.
Eastern Cornbelt: Potash was steady at $400-$415/st FOB in the Eastern Cornbelt, depending on grade and location.
Western Cornbelt: Potash pricing was flat at $410-$417/st FOB regional warehouses, with the low for red and the upper end for white granular tons.
Southern Plains: Potash was level at $405-$410/st FOB regional warehouses. The Carlsbad, N.M., potash market remained at posted levels of $405/st FOB for 60 percent standard, $410/st FOB for 60 percent granular and 62 percent standard, and $417/st for 62 percent granular.
Sulfate of potash magnesia was reported at $375-$390/st FOB Carlsbad, up $10/st from December pricing levels, with the low for standard, the upper end for premium grade, and the granular market quoted at $385/st FOB.
South Central: Potash pricing remained at $405-$410/st FOB warehouses in the South Central region.
Southeast: Sources quoted rail-delivered potash in the Southeast at $410-$418/st for Canadian tons, depending on location. The regional warehouse market was pegged at $395-$410/st FOB, with the low reported for discounted import tons out of port terminals.
China: Canpotex on Jan. 13 announced that it had entered into a new three-year Memorandum of Understanding (MOU) with Sinochem Fertilizer Macao Commercial Offshore Ltd. to supply a minimum of 1.9 million mt of red standard grade potash during the term of the MOU. In addition, Sinofert has the option to purchase up to 2.4 million mt (800,000 mt/y) of other grades of Canpotex potash during the term. Pricing will be negotiated every six months (January to June and July to December), based on market conditions.
The MOU covers the period Jan. 1, 2015, to Dec. 31, 2017, and is designed to encourage future growth in new Canpotex product grades and new market regions in China. It provides exclusivity to Sinofert for Canpotex red standard grade potash only, provided Sinofert exercises the annual minimum purchase requirements.
Steve Dechka, Canpotex’s president and CEO, said this agreement signifies Canpotex’s ongoing commitment to the growing Chinese market. “Canpotex is proud of its long-term trusting relationship with Sinofert, and this agreement demonstrates the confidence we continue to have in that partnership. We have been supplying Saskatchewan potash to China since 1972, and with this agreement we will continue to be a leading supplier to this growing market,” Dechka said. “Canpotex is committed to making an important contribution to global food security and meeting China’s growing potash needs.”
Market watchers would have been happier had there been news about a price for the first half of 2015. Sellers had started out suggesting a 10 percent increase over 2014’s $305/mt CFR. Those price ideas have been under pressure in recent months, however, with Russian supplier Uralkali fearing that Belarusian Potash Co. might have a negative