US Gulf:
NOLA potash barges continued to be quoted at $380-$400/st FOB, with very little activity to test the market. “I think the China deal with Canpotex may lower the market before too long,” said one contact.
Potash remained flat at $420-$440/st FOB in the Eastern Cornbelt, with the Cincinnati market quoted at $420-$430/st FOB. Sources said the industry is waiting for fill programs to roll out later this month.
In the Northeast, Fairless Hills potash pricing was quoted at $450/st FOB for June shipment.
Western Cornbelt:
The potash market dropped to $415-$440/st FOB in the Western Cornbelt, with the low confirmed at St. Louis.
California:
Potash was steady at $605-$615/st FOB or DEL in California in mid-June.
Pacific Northwest:
Potash pricing in the Pacific Northwest remained at $525-$540/st FOB, with reference pricing steady at $560/st FOB/DEL for 60% MOP and $570/st FOB/DEL for 62% MOP.
The last potash postings FOB Moab and Wendover, Utah, included $505/st for 60% white standard and $515/st for 60% white granular.
Western Canada:
Potash prices for truck tons at the mine in Saskatchewan remained in the C$680-$695/mt FOB range, depending on grade. No potash fill programs were on the table at mid-month.
China:
Uralkali has signed Memoranda of Understanding (MOU) with five Chinese fertilizer importers under which it may supply a total of about 3.5 million mt of potash over three years, Bloomberg reported on June 15, citing a company statement.
The MOUs were signed with China National Agricultural Means of Production Group Corporation Ltd., Zhejiang AMP Group Co. Ltd., Beifeng Agricultural Production Means Group Co. Ltd, Inner Mongolia Tianyue Huijing Industrial Group Co. Ltd, and Suifenhe Guangcheng Economic and Trade Co. Ltd.
Under the terms of the agreements, Uralkali said it may supply 200,000-300,000 mt of potash annually to each of the importers. The potash is planned to be shipped to China by rail through land border crossings. The producer made no comment in its statement about the pricing of the tons.
Uralkali traditionally has sent sizeable volumes of potash to China by rail, in addition to seaborne volumes, agreeing to separate contracts for each.
Following Canpotex’s settlement of a potash supply contract with China at $307/mt CFR for shipments through Dec. 31, 2023 (GM June 9, p. 15), Uralkali said in a statement that it welcomed the conclusion of a contract with the Chinese buying consortium, but added that the $307/mt CFR price “does not meet our expectations given the market situation, and disrupts effective competition both in the region and worldwide.”
Since the imposition of EU and US sanctions, Belarus has substantially increased its exports to China by rail. Last year, according to an Interfax report citing Belarus Transport and Communications Minister Alexei Avramenko, Belarus railed more than 1 million mt of potash to China (GM Jan. 6, p. 28).
India:
National Fertilizers Ltd. (NFL) issued a tender on June 10 for the supply of 100,000 mt of standard potash for shipment in two lots. The minimum bid quantity for each coast is 25,000 mt. NFL requires shipment from the loading port within 25 days from the date of the issue of the LOI/PO, with the latest shipment date put at July 7.
The tender was originally due to close on June 19, but was subsequently extended to June 20.
No word was heard of any award under FACT’s tender for the purchase of 30,000 mt of standard potash for arrival at Tuticorin port between June 25 and July 10 (GM May 5, p. 14). The tender closed on May 15, with offers requested to remain valid for 15 days from the date of the tender opening.
Brazil:
Potash prices dropped again in Brazil, with sources reporting the landed price at $310-$340/mt CFR. An excess of material – as much as 3.5 million mt – was cited as a major motivating force in the falling market.
Rondonopolis dipped slightly to $420-$445/mt FOB ex-warehouse. Sources noted new price discussions dropping to $400/mt FOB, but mostly for product from Belarus.