U.S. Gulf:
NOLA prompt potash barges were called $238-$245/st, down from the earlier $240-$248/st FOB.
U.S. Imports:
July-August potash imports fell 22 percent, to 1.9 million st from the year-ago 2.44 million st. August imports were down 14 percent, to 1.05 million st from 1.22 million st.
Eastern Cornbelt:
Potash pricing was pegged at $280-$285/st FOB Cincinnati, $285-$290/st FOB on the Illinois River, and up to $295/st FOB inland warehouses on a spot basis. Sources reported no new business at producer postings of $315/st FOB or higher in the region.
Western Cornbelt:
Potash was pegged at $275-$285/st FOB most regional warehouses in the Western Cornbelt, with the low confirmed at St. Louis and the upper end in Iowa. The Caruthersville market was reported in the $280-$285/st FOB range for the week.
Southern Plains:
Potash was pegged at $280-$290/st FOB Catoosa/Inola and $295/st FOB Houston, down some $15/st from last report. Postings from Intrepid at Carlsbad, N.M., remained at $342/st FOB for 62 percent standard and $335/st FOB for 60 percent granular.
South Central:
Potash pricing in the South Central region was pegged at $275-$285/st FOB terminals, with the low confirmed at Memphis and reflecting a $5/st drop from last report.
Southeast:
The potash market in the Southeast was pegged at $290-$305/st FOB port terminals for import tons, down slightly from last report, with the low at Wilmington and the upper end FOB Chesapeake, Va. Rail-DEL pricing was quoted at $315-$330/st in the region, depending on grade and location.
Canada:
The Mosaic Co. announced on Oct. 10 that it will temporarily reduce production at its Esterhazy mine, which, when combined with the previously announced potash curtailment, brings its total potash curtailments to up to 600,000 mt. The company cited increasing inventories as a result of the short-term slowdown in global potash markets, and increased risks of a delay in the settlement of the Chinese supply contract.
K+S, Uralkali, Nutrien, and Belaruskali have all announced production cutbacks in recent weeks. Israel Chemicals Ltd. (ICL) also plans a three-week shutdown for a plant upgrade at the company’s Dead Sea site towards the end of the year, which would take out about 180,000 mt of ICL’s overall output and sales in the second half of this year.
There is still no word of any conclusion of contract supply negotiations taking place between India’s biggest potash importer, Indian Potash Ltd. (IPL), and Uralkali, and likely other suppliers. Uralkali said it plans “a potash accord with India in the near future,” however, according to an Oct. 10 Interfax report, citing Uralkali Senior Independent Director Paul Ostling.
Mosaic President and CEO Joc O’Rourke said in a recent conversation with analysts at Sanford C. Bernstein & Co., reported by Bloomberg, that he believes a settlement of the Indian contracts will come “at the start of this current quarter.”
As for China, O’Rourke said he sees contract settlements being reached toward the end of the fourth quarter. While noting that “China contracts aren’t the steady flow they once were,” he said he still views them “as necessary” due to the ties to the country’s import licenses, Bloomberg reported.
There has been talk in recent weeks among some other market participants that China is likely to put off settling annual supply contracts until early next year, however, amid lackluster demand in the country and high port inventories.
Russia:
Exports of potash in the eight months through August increased by 7.5 percent year-over-year, to 5.43 million mt, Itar-Tass (Russia) reported, citing Russia’s Federal Customs Service.