U.S. Gulf:
NOLA potash barges were reported at $645-$665/st FOB, up from the week-ago $635-$655/st FOB. There were reports that some sellers pulled their pricing once the Russia/Ukraine news broke.
Eastern Cornbelt:
Potash pricing was quoted at $705-$725/st FOB for prompt tons in the Eastern Cornbelt, depending on location, with the low reported at Cincinnati. The Ottawa market was pegged at the $710/st FOB level for prompt tons.
Western Cornbelt:
Potash pricing was unchanged at $690-$720/st FOB in the Western Cornbelt, with the St. Louis market confirmed in the $690-$705/st FOB range.
Southern Plains:
Potash pricing was pegged at $685-$700/st FOB Catoosa/Inola and $695/st FOB Houston in late February.
Intrepid on Feb. 18 confirmed a $25/st increase for prompt and forward business. New postings at Carlsbad, N.M., include $805/st FOB for 60 percent white granular and $825/st FOB for 62 percent white standard, with new list prices at Moab and Wendover, Utah, firming to $800/st for 60 percent white standard and $805/st for 60 percent white granular.
South Central:
The potash market was quoted at $710-$730/st FOB terminals in the South Central region, up slightly from last report, with the low confirmed at Memphis and the high at Shreveport. Potash pricing at Little Rock was pegged at the $715/st FOB level in late February.
Southeast:
Potash pricing was pegged at $710-$730/st FOB port terminals in the Southeast, with reports of rail-DEL offers in the $738-$760/st range from Canadian suppliers. In the Northeast, new pricing offers FOB Fairless Hills were reported at $710/st for February, $715/st for March, and $725/st for 2Q.
India:
There were no new announcements this week of further supply contracts following last week’s agreements between Canpotex, ICL, and Indian Potash Ltd. (IPL) for potash deliveries this year at a price of $590/mt CFR with 180 days’ credit (GM Feb. 18, p. 14).
Reports were circulating earlier this month that IPL is in talks to buy 1 million mt of potash from Belarus in 2022 by paying with rupees (GM Feb. 4, p. 1). The Indian buyer has now asked BPC to disclose which ports it will use for shipments before it will sign a new potash supply deal with the company this year, according to a Bloomberg report late last week, citing an unnamed source familiar with the matter.
No awards have been heard under RC’s tender for the supply of 170,000 mt of standard potash that closed on Jan. 28 (GM Feb. 4, p. 15) or under FACT’s tender for two 40,000 mt lots of standard potash for delivery to Tuticorin port in March and April (GM Feb. 11, p. 16). FACT’s tender originally was set to close on Feb. 14, but was subsequently extended to Feb. 21.
As previously reported, National Fertilizers Ltd. (NFL) on March 21 will close a Request for Proposal (RFP) for entering into a long-term agreement/MOU with producers of potash for the supply of 200,000 mt of standard pink/red potash(GM Feb. 18, p. 15).
Brazil:
Upward pressure on MOP prices was felt all week. Sources put the price at $780-$820/mt CFR before the Russian invasion of Ukraine stopped trading.
The deals that were done showed an interest in buyers to pick up what tons they could now rather than face even higher prices later. The initial concern stemmed from the Belarus force majeure declaration after Lithuania no longer allowed Belarus potash suppliers to transit their country or to use the Lithuanian ports for exports.
The same issue played out in Rondonopolis as prices tightened to $910-$926/mt FOB ex-warehouse.
Brazilian buyers are keeping a keen eye on Belarus and Russia. In 2021, Brazil reported imports of 2.4 million mt from Belarus and 3.6 million mt from Russia. The combined total represented about 48 percent of all of Brazil’s potash imports.
While Russian MOP was not included in the sanctions announced this week by the U.S. and its allies, Belarussian tons will be sanctioned beginning April 1.
Russia:
Russian exports of MOP in 2021 were reported at 11.8 million mt by Trade Data Monitor. This is up 24 percent from the 9.5 million mt exported in 2020.
The main buyers last year were Brazil with 3.6 million mt, representing 30 percent of Russian exports, and China with 2.6 million mt, representing 22 percent of exports. The U.S. took 1 million mt of MOP, accounting for 9 percent of exports.