Potash prices up for Brazil and Asia and set to rise for EuropePosted: February 3, 2010
Global growth patterns are widening between emerging markets and developed economies. Potash pricing appears to reflect the overall strength in Brazil and Asia and the relative weakness in Europe.
Belarussian Potash Co. (BPC), seller of 30% of the world’s potash, announced 6% price hikes in potash sold to its Brazilian and Asian markets:
“Oleg Petrov, director of sales for Belarussian Potash Co., said Wednesday the company had increased its spot price for standard material to $410 (U.S.) per tonne from $385. The new price for granular material is $425 per tonne, up from $400.
“We can probably strike new deals at the end of March or in April, as we’re completely sold out,” Mr. Petrov told Reuters. “We have no products for February and most of March as a result of strong demand.””
Just last December, German salt miner K+S, the world’s fourth largest potash producer, CUT potash prices for its European wholesalers. The company now states that these price cuts are driving stronger demand. K+S now expects that prices have bottomed, and the company is set to increase prices again 3.5% (from 285 to 295 euros per tonne) in the spring.