Owing to Serious Oversupply, Potash Market Still Would be Sluggish

By CnAgri2017-05-15 11:06:38 Print

It is reported that the negotiation of big contracts for 2017 has been launched since middle April, which couldn’t boost domestic market. It was expected that potash prices would maintain at a low level this year. The main reasons are as the followings:

First, domestic potash supply is increasing. In 2017, domestic potash capacity would increase steadily, up 0.7 million MT. Potash output in the first quarter of this year stood at 1.385 million MT, up 7.1% year on year; potash imports in the first quarter reached 2.976 million MT (product), up 48.1% year on year.

Second, the growth of domestic potash demand almost stabilizes. Along with a drop in farmers’ inputs in fertilizer because of cheap-price agricultural products, the total potash demand would be around 10.582 million MT this year, up 2.9% year on year, 0.1 percentage point less than 2016.

Besides, MOP stocks at the ports still maintained at a high level of 1.8 million MT, which won’t be relieved in the short term.

Along with an abundant supply and a limited demand, potash market still would be sluggish and potash prices would maintain at a low level.