U.S. Gulf:
New NOLA potash trades were reported in the $750-$815/st FOB range, up from the week-ago $730-$805/st FOB, with the latest trades pegged at the higher end of the range.
Eastern Cornbelt:
Potash prices in the Eastern Cornbelt moved to $790-$835/st FOB during the week, up from the prior week’s $785-$820/st FOB, with the lower end of the range confirmed at Cincinnati.
Western Cornbelt:
Potash pricing was quoted at $790-$835/st FOB in the Western Cornbelt, up $10/st at the high end of the range. Sources said offers in St. Louis were confirmed at both the low and high ends of the range during the week, with the upper level reported on March 24.
California:
Potash remained at $875-$895/st FOB in California for 2Q tons, with the low reported for 60 percent MOP and the high for 62 percent.
Pacific Northwest:
Potash pricing in the Pacific Northwest firmed again for 2Q shipment, moving to $880/st FOB or DEL for 60 percent MOP and $900/st FOB or DEL for 62 percent MOP, up $50/st from last report. The last mine postings from Intrepid at Moab and Wendover, Utah, included $800/st for 60 percent white standard and $805/st for 60 percent white granular.
Western Canada:
Sources quoted truck pricing for potash in the C$990-$1,015/mt range FOB Saskatchewan mines, depending on grade, up C$25/mt from last report.
India:
Israel’s ICL Ltd. confirmed on March 21 that it has signed a new long-term supply agreement with Indian Potash Ltd. (IPL), India’s biggest potash importer, for 600,000-650,000 mt of potash annually from 2022-2027.
ICL said the new agreement replaces the previous framework deal between the two parties that was signed in 2019.
Under the new deal, ICL will supply IPL with 600,000 mt of potash in 2022, and 600,000 mt, plus options for 50,000 mt, in 2023. In each of the following years, ICL will supply IPL with 650,000 mt of potash, plus options for 50,000 mt per year.
ICL said prices for the quantities supplied will be determined in accordance with the prevailing market prices in India at the relevant date of supply. It said a new annual supply contract for 2022 deliveries was signed between ICL and IPL in February.
Arab Potash Co. (APC) reported on March 24 that it also has agreed to a new annual contract with IPL for the supply of potash from Jordan to India for March to December this year, according to a company filing to the Amman Stock Exchange. It said that the terms and conditions are in line with potash contracts in place in the Indian market. APC said the contract with IPL covers the supply of firm and optional tons totaling 375,000 mt.
India imported 470,701 mt of potash from Jordan in calendar year 2021 and 82,545 mt in January 2022, according to Trade Data Monitor.
Canadian potash marketing and export organization Canpotex was the first supplier to reach a new supply contract with India this year (GM Feb. 18, p. 14). It announced on Feb. 14 that it had agreed to a new supply deal with IPL for potash shipments from April through December at a price of US$590/mt CFR. The new price reflects an increase of $145-$310/mt over the 2021 Indian contract price.
Canpotex did not comment on the delivery volumes. According to an unnamed Indian senior ministry official cited by Reuters, however, IPL will buy 1.2 million mt of potash from Canada in 2022.
Meanwhile, National Fertilizers Ltd. (NFL) has extended its Request for Proposals (RFP) for entering into a long-term agreement/MOU with producers for the supply of potash during FY2022/23. The RFP, issued on Feb. 17 (GM Feb. 18, p. 15), had been due to close on March 21.
NFL also included a new clause in the RFP, stating that while the preferred currency of the purchase order (PO) will be U.S. dollars, as is normally the case, if sellers requested for the issue of the PO in euros, rubles, or Indian rupees, NFL would issue the PO in one of those currencies, considering the exchange rate of the European Central Bank, the Central Bank of Russia, or the Reserve Bank of India, respectively, for those currencies.
The buyer is looking for firm quantities of 200,000 mt of standard pink/red potash. The original shipment schedule was for 125,000 mt to be shipped from the load port between March 15 and June 15, with the balance of 75,000 mt to be shipped between Aug. 1 and Sept. 30. The tons are to be delivered to East and West Coast ports.
RCF has yet to award its tender for 105,000 mt of standard white/pink potash. The original tender closed on Jan. 28 and had requested four shipments to be made in February and March. The buyer subsequently extended and re-issued the tender, looking for shipments in March and May to MBPT and East Coast ports. Sources report that there have been few offers into the tenders, however.
China:
Arab Potash Co. (APC) said it has agreed to a new potash supply contract with Sinochem Macao. In a filing to the Amman Stock Exchange this week, APC said the terms and conditions of the new deal are in line with current market prices for volumes of about 600,000 mt, including optional quantities, which will be shipped from March to December this year.
Canpotex was the first supplier this year to reach a new contract with China’s potash buying committee for standard grade potash shipments. The supplier concluded the new deal at $590/mt CFR in mid-February for shipments through December 2022, marking a $343/mt increase on the 2021 China contract price (GM Feb.18, p. 14).
ICL subsequently announced later that week that it had also concluded a new supply contract with its customers in China for deliveries to the end of 2022, at the prevailing market price (GM Feb. 18, p. 15).
Earlier this month, K+S said it has not yet concluded new supply contracts with China and India, with volumes to the former country currently under negotiation (GM March 18, p. 16).
Imports of MOP in China during January and February 2022 were reported at 1.47 million mt by Trade Data Monitor. This amount is only marginally up from the 1.46 million mt imported during the same period in 2021. The main supplies in the first two months of the year were Russia with 450,000 mt, Belarus with 370,000 mt, and Canada with 318,000 mt.
February 2022 imports were at 771,000 mt, up 28 percent from February 2021 imports of 602,000 mt. The February 2022 imports were almost evenly split between Belarus, Russia, and Canada, with each having a 29-30 percent share of the imports.
Brazil:
Concern among buyers continues as supplies from Russia and Belarus remain in question due to sanctions imposed on these countries by the U.S. and E.U. While concern grows, prices remained relatively stable. Sources said an unwillingness by farmers to make long-term commitments for product resulted in few new sales to record.
The landed price widened slightly to $1,000-$1,100/mt CFR. At the same time, the Rondonopolis market tightened to $1,000-$1,200/mt FOB ex-warehouse.