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Price Growth in Potash Contract in 2018 Would be Upward of 30 US Dollars/MT

China Agriculture Report By CnAgri2018-05-30 10:12:55China Agriculture Report Print Potash imports in China are around 8 million MT and the dependence on foreign potash is upward of 40%, so the negotiated price in potash contract becomes the focus paid by the industry. Along with the growing of potash prices at home and international markets, although potash contract negotiation has not started officially, yet the growth in price in potash import contract is inevitable.   
The price in potash contract in 2017 was 230 US dollars/MT, and at that time, the exchange rate of RMB against the U.S dollar was 6.8, however the current exchange rate is 6.4; and meanwhile, from the date of signing potash contract to now, the selling price of 62% Russian white potash increases to 2,200 RMB/MT from 1,920 RMB/MT, which means the gross profits of imported potash increase by 370 RMB/MT (namely 58 US dollars/MT). 
From the date of signing potash contract to now, the CIF of spot large-grained SOP in Brazil increases to 290-300 US dollars/MT from 260-270 US dollars/MT; the CIF of spot small-grained SOP in Southeast Asia goes up to 250-265 US dollars/MT from 220-260 US dollars/MT. On the whole, the growth approached to 30 US dollars/MT.        
Considering of necessary profits of importers and the growth of international potash prices, it was predicted that potash contract prices in 2018 would be upward of 30 US dollars/MT.

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