U.S. Gulf: Most players said the last done business was at $355/st FOB, at best. Sources said if you wanted more than one barge, you could likely get a lower price.
Eastern Cornbelt: Potash was tagged at $395-$410/st FOB regional warehouses in the Eastern Cornbelt, depending on grade and location, with the low end of the range reported in the Cincinnati market last week.
Western Cornbelt: Potash was quoted in the $400-$410/st range out of most regional terminals in the Western Cornbelt, indicating a slight drop from last report. One source quoted red potash in the $405-$410/st range FOB Sioux City, Iowa, and Council Bluff, Neb.
Southern Plains: Potash was pegged at $390-$395/st FOB in the Tulsa market, down $10/st from last report, though the low end of the range was reported after netbacks on delivered prices.
The Carlsbad, N.M., potash market remained at reference levels of $405/st FOB for 60 percent standard, $410/st FOB for 60 percent granular and 62 percent standard, and $417/st for 62 percent granular. Sources acknowledged, however, that lower prices in the Tulsa market would likely be met by delivered tons from the mine when potash demand starts to accelerate in the region. “We need spring to actually break and get the product to the field,” said one source.
Effective March 30, Intrepid’s Trio postings FOB Carlsbad, N.M., are slated to firm to $385/st for standard, $395/st for granular, and $400/st for premium. Those levels represent a $10/st increase from the company’s previous list prices.
South Central: Potash remained flat in the $395-$400/st FOB range out of warehouses in the South Central region.
Southeast: Imported potash tons were quoted at $385-$395/st FOB port terminals last week, reflecting another drop from last report. Canadian tons were pegged in the $410-$417/st rail-DEL range in the Southeast, with the low for red and the upper end for white granular.
China: Belarusian Potash Co. (BPC) said on March 19 that it has reached an accord with the Consortium of the Chinese buyers regarding a price increase to $315/mt CFR for shipments of MOP to China in 2015. The new price is a $10/mt increase on the year-ago contract of $305/mt CFR. BPC said volumes are still under discussion. While BPC is indicating the contract is for all of 2015, others last week were speculating that it may just be for the first half.
“Overall, a pending Chinese contract affected the potash market adversely and put pressure on the market situation in other regions,” said BPC Director General Elena Kudryavets. “Signing the contract later than the end of March would be detrimental to the market. The accord reached by the parties will undoubtedly serve as a positive signal to the potash market, and will vitalize it, adding stability and confidence to the market players. We have convinced the Chinese partners that our pricing approach is justified and that a price increase is mandatory, which is relevant in the current market situation. We believe that this event is another huge accomplishment of JSC Belarusian Potash Co.”
Competitors, however, were not in agreement. Uralkali Head of Sales and Marketing Oleg Petrov said the contract price agreed between BPC and Chinese importers is significantly lower than the expected result.
“Uralkali and Canpotex have been in negotiations with the Chinese to obtain a price increase two to three times more than Belarusians ($30/mt and $25/mt, respectively),” Petrov said in an emailed statement. “The increase of $10 is symbolic and will not provide the necessary support for the market. By waiting 2-3 weeks longer, the suppliers could have concluded a much more