U.S. Gulf:
The NOLA potash barge market remained quiet at $740-$795/st FOB.
Eastern Cornbelt:
Potash pricing was reported at $785-$795/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati and reflecting a $5-$15/st drop from last report. The Toledo potash market was pegged at the $790/st FOB level in late May.
Western Cornbelt:
Potash pricing slipped to $780-$795/st FOB in the Western Cornbelt, depending on location, with the low reported at St. Louis.
California:
Potash reference pricing remained at $875-$895/st FOB in California for 2Q tons, with the low reported for 60% MOP and the high for 62%.
Pacific Northwest:
Potash pricing was pegged in a broad range at $840-$880/st FOB and $855-$900/st DEL in the Pacific Northwest, depending on grade and location. The last reference prices from Intrepid FOB Moab and Wendover, Utah, included $850/st for 60% white standard and $855/st for 60% white granular.
Eastern Canada:
Sources quoted truck pricing for potash in a wide C$990-$1,020/mt range FOB Saskatchewan mines, depending on grade, supplier, and time of shipment.
Western Canada:
Sources quoted truck pricing for potash in a wide C$990-$1,080/mt range FOB Saskatchewan mines, depending on grade, supplier, and time of shipment.
India:
The rising price of fertilizers caused the Indian government to increase the budget for subsidies. The government is justifying its additional support for MOP by noting that prices jumped 116% from last year, without a corresponding increase to farmers’ incomes.
The government said it would be increasing the amount available for phosphate and potash support under the NBS program to $786,000 for April-September. This is a jump from the $737,000 it spent for MOP and phosphate subsidies during the whole 2021/22 fiscal year.
China:
January-April imports of MOP were down 17%, to 2.9 million mt from the 3.5 million mt during the same period in 2021, according to Trade Data Monitor.The top three suppliers were Belarus with 832,000 mt, Russia with 798,000 mt, and Canada with 578,000 mt. Israel and Laos also stepped up their shipments to 330,000 mt and 215,000 mt, respectively.
April 2022 imports were reported at 823,000 mt, down from the 949,000 mt imported in April 2021. Five source countries accounted for 91% of the imports. Russia, Canada, and Belarus supplied almost two-thirds of the imports for a total of 524,000 mt. Israel and Jordon were the remaining suppliers with 121,000 mt and 108,000 mt, respectively.
Brazil:
Despite growing concern that additional material from Belarus and Russia might not soon be available, prices for MOP were down slightly to $1,100-$1,200/mt CFR . Sources put the price at $1,125-$1,200/mt CFR .
Sources said concerns remain that the sanctions against the two top producing countries might cause a shortage of product for the second semester of the year. Even with that concern, buyers are refusing to pay higher prices, leaving suppliers with no choice but to either hold onto the product – with the accompanying regular storage fees – or accept the lower price bids from the buyers. Many are opting for the lower prices.
The Brazilian government sent a trade delegation to the Middle East for sessions that included talks about increasing MOP purchases. The Arab Potash Co. (APC) in Jordan told the delegates it would be increasing its sales to Brazil and is looking to establish some production facilities in the country as well.
Even if APC steps up its shipments to Brazil, its output will not be enough to make up for the losses that are expected from Belarus and Russia. The first tons from Jordan came in 2019. At that time, Brazil imported 10.5 million mt of MOP. The Jordanian contribution to that amount was 42,000 mt.
In 2021 Jordanian exports increased to 159,000 mt, but this was against total MOP imports of 12.8 million mt. So far this year, Brazil has imported 3.8 million mt of potash, 591,000 mt above the same period last year, with none of it coming from Jordan.