Potassium Price Upturn

By CnAgri2012-12-17 10:51:16 Print Potassium price has recently picked up moderately in China. Imported MOP price picked up RMB30 ~ 50/MT at Chinese ports in early December, with RMB2,600 ~ 2,700/MT for Russian red potassium. Red potassium price through border trade was RMB2,550 ~ 2,600/MT.
 
MOP with 60% nutrient produced by Qinghai Salt Lake Potassium Co., Ltd. was sold at RMB2,800 ~ 2,900/MT in the wholesale market. Powder SOP and granulated SOP with 51% nutrient produced by Xinjiang Lop Nor Co., Ltd. were sold at RMB2,950/MT and RMB3,050/MT respectively in the wholesale market.
 
Causes behind the potassium price upturn include the following:
 
First, fertilizer winter reserve program is under way and compound fertilizer plants are purchasing raw materials for spring plowing.
 
Second, potassium production decreased noticeably in the Northwest in winter on account of weather condition. Potassium production was below 300,000 MT (nutrient) in November, down 35% from the month before.
 
Third, world major potassium producers cut production to prop up price in face of a dull market. From January next year on, Russian Uralkali will stop supplying potassium to Chinese border market.
 
Despite the price upturn, world potassium market remains sluggish at present. Domestic potassium price may be largely determined by the outcome of potassium import negotiation early next year.

From “China Fertilizer Market Weekly Report”