2011 Potash Trends
Potash prices were on the upswing in the latter half of 2010, and have amplified this trend so far in 2011, buoyed by strength in the grain markets.
Potash prices were on the upswing in the latter half of 2010, and have amplified this trend so far in 2011, buoyed by strength in the grain markets.
Despite uncertainty over the stability of the global economic recovery, the fertilizer market is holding up very well, and will be buoyed over the coming years by supply shortages.
Knowing very well that economic troubles may lie ahead, executives of major fertilizer companies have stood firm in claiming that their industry is well-positioned to withstand a bumpy ride, and claim that it will take a “severe and prolonged” global recession to crimp fertilizer demand.
Canpotex and India have finally come to a six-month deal in which India will pay, at least at the onset, $470 per tonne including freight, for potash, approximately the same rate that China is paying.
While recapping their record-setting Q2 2011 earnings, Potash Corporation CEO Bill Doyle said that the potash industry is entering a period of “unprecedented opportunity.”
Rumours are spreading that a state-owned Chinese company may come forward with a purchase offer for Belarus’ prized asset, potash miner Belaruskali.
Potash mining, like any business, is faced with scrutiny and controversy which range from environmental to political and financial concerns.
Canpotex will supply China with 630,000 tonnes of the crop nutrient in the second half of 2011 at $470 per tonne, a 17.5 percent increase compared to the contract pricing agreed upon for the first half.
With Belarusian potash miner Belaruskali up for sale, rumours are running wild over who could be a potential suitor for one of the world’s biggest potash producers.
According to market experts high food prices are likely to persist for the next few years. However, high food prices are good news for potash prices, because as the price that farmers can sell their crops for rises, so does their cash flow to spend on fertilizer.
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