U.S. Gulf: Barge price ideas were moving up last week, with most sources putting new prompt trades in the $204-$208/st FOB range. Sources cited higher postings by domestic producers for the increase, as well as buyers snapping up imports at lower numbers and leaving the import market depleted until the next vessel arrives.
February-March trades were called $209-$212/st FOB.
Eastern Cornbelt: The potash market remained at $245-$265/st FOB in the Eastern Cornbelt, with the low quoted for prompt tons out of river locations in both Ohio and Illinois, and the upper end reflecting updated reference levels from Canadian producers.
Although sources said inland potash values are “heating up to reflect the Canadian price increases,” other noted that buyers are “not seeing the total effect yet of the price increase.”
Western Cornbelt: Potash was generally quoted in the $245-$255/st FOB range in the Western Cornbelt, although producer postings remained at the $265/st FOB level. Sources pegged the St. Louis potash market at $245/st FOB for prompt and $250/st FOB for prepay.
Northern Plains: Potash was quoted at $245-$255/st FOB the Twin Cities, with delivered tons pegged in the $245-$265/st range in North Dakota, depending on grade and location. The market to U.S. customers FOB Saskatchewan mines was reported at $222-$232/st FOB after netbacks, depending on grade.
Great Lakes: The potash market was pegged at $250-$265/st FOB in the Great Lakes region, with the bulk of spot quotes reported firmly at the top end of the range and the low quoted by Michigan contacts FOB Burns Harbor for either take or prepay.
Michigan sources quoted the sulfate of potash (SOP) market at $565/st FOB, unchanged from last report.
SOP Magnesia was steady as well at $325-$360/st FOB Michigan warehouses.
Northeast: Sources quoted the potash market at $245-$265/st FOB in the Northeast, with the low at East Liverpool. Pricing out of the Baltimore market varied from $252-$265/st FOB, according to supplier.
India: Madras Fertilizers Ltd. (MFL) is reported to have purchased 25,000 mt of standard potash at $219.25/mt CFR from Indian Potash Ltd. under its tender, which closed Dec. 5. While the exact terms of the deal are not known, the price indicated is more than $7/mt below the country’s current official contract price of $227/mt CFR with 180 days credit. The tons are understood to be for prompt delivery.
Amid healthy domestic demand and year-to-date imports that are only marginally up from the 2015/16 fertilizer year, India’s potash inventory situation is much improved compared with last year. According to Mosaic’s latest India NPK Statistical Update, which cites Fertilizer Association of India data, India’s potash stocks were 249,000 mt as of November 2016, compared with 470,000 mt in November 2015.
As previously reported, in the first eight months of the 2016/17 fertilizer year, import arrivals of direct application potash totalled 2.589 million mt, against 2.572 million mt for April-November 2015, according to data from India’s Department of Fertilizers.
Belarus: Belaruskali said this week that it produced just over 10 million mt of fertilizer last year. Most of this output consists of potash, but the company also produces NPK fertilizers, producing some 94,000 mt of NPK in the nine months to Sept. 30, 2016. Local media last month reported that Belarus expected its 2016 potash exports to exceed 9 million mt.
No further details have yet emerged on Belaruskali’s planned mine maintenance program, which is expected to take place during the first quarter. The producer is said to be fully committed through the end of January.
China: While the central government dropped the export duties on all other fertilizers, the tariffs on potash exports remain at RMB600/mt(US$86.20). The potassium nitrate duty remains at the 2016 level of 5 percent. The move is seen by industry watchers as a clear message that the government wants to discourage any efforts to send potash offshore.
The Chinese government lowered the export duty on NPKs from 30 percent to 20 percent of the portside price.