White Potassium Price: Domestic Stability Falls

Domestic Ming Steady Falling International Pace

The domestic potash fertilizer market offered consolidation at the beginning of the week, but due to the overall downturn of nitrogen fertilizer, phosphate fertilizer, and compound fertilizer, the transaction price in the middle of the week declined. The price of white potassium in the port was slightly reduced by around RMB 30 (t price, the same below).

Compared with the same period of last year, the overall situation of the domestic potash fertilizer market was better this year. The first quarter of 2014 continued the tight supply situation of some varieties in the fourth quarter of 2013. The overall price of potash fertilizer in the market was relatively stable this spring. After entering March, the arrival of goods in the port increased, and large-granule sources of raw materials that had been out of stock in the previous period were added. However, Yingkou Port is affected by the shortage of manpower and the filling speed is slow. In addition, the overall arrival of border trade in the first quarter was still unfavorable, especially large particles, and basically no goods could be sold. The increase in production of BB fertilizer in Northeast China this spring has driven demand for large particles. However, the tight supply of large particles has not been fully improved since the end of last year. The shortage of demand in the northern region requires the supply of supplies from the southern ports, which in turn leads to tight supplies in the south. At the same time, red potassium was used to squeeze large particles in port and border trade, and red potassium also appeared to be tight. Affected by this, despite the tepid demand from the downstream, the price of potash was kept stable in the first quarter. The port 62% white potassium mainstream offer 2150 yuan (t price, the same below), the transaction has 20 to 30 yuan discount, Russia Red Pot offer 2050 yuan, large particles 2350 ~ 2400 yuan, there is a certain deal discount. With the end of the spring market, the demand for fertilizers gradually weakened, and the shipping contracts for the new year began to arrive in large quantities. Last week, the price of white potassium at the port fell first.

The price of domestic and border trade supplies is currently consolidating. The price of Russian Red Potash at the port is around 1,880 yuan, and the actual transaction is 1850 to 1880 yuan. White potassium is priced at 2000 to 2020 yuan. The transaction is negotiable. The contract price of Salt Lake after March 11 was increased by 100 yuan, 62% of crystallized potassium chloride was quoted at station price of 2340 yuan, 60% of crystal arrival price was 2240 yuan, and 57% of crystal arrived at station price of 2020 yuan. 60% of powdered potassium chloride reached the station price of 2,200 yuan, and 57% of powdered potassium chloride reached the station price of 1,980 yuan. The downstream reaction was dull. The channels were mostly pre-order stocks, and the turnover of new orders was not high. The mainstream outbound prices were basically flat compared with the previous period. Jiangsu was 2020 yuan, Shanxi was 2020-2030 yuan, and Shandong's low-end stock price fell below 2000. yuan. 57% of the domestic mainstream of potassium chloride to the station offer 1850 ~ 1900 yuan, the library price of 1700 ~ 1780 yuan.

Internationally, international prices of potassium chloride rose steadily last week. Standard potassium chloride FOB prices: Vancouver 270 to 315 US dollars, 290 to 320 US dollars in Northwest Europe, the Commonwealth of 230 to 310 US dollars, 280 to 310 US dollars in Jordan, Israel 280 to 315 US dollars, Southeast Asia CIF 290 to 350 US dollars. The granular potassium chloride cash CIF: Brazil 330 to 360 US dollars, Europe 270 to 285 euros, high-end rose 5 euros.

The potash fertilizer negotiations in India are about to start in the new year. It is estimated that the demand for potassium chloride will be 1.52 million tons in 2014 and the expected demand will be 2.02 million tons in 2013. However, due to the price increase and exchange rate changes, the actual consumption is only 1.19 million tons. In February 2014, nearly 200,000 tons of potassium chloride arrived in Hong Kong and another 108,000 tons arrived in Hong Kong in March. In theory, the subsidy policy is as of the end of February.

Overall, with the increase in shipment volume, the decline in white potassium prices will become the starting point for a slight drop in domestic potash prices. In the second quarter, the international market rose steadily, but the recovery momentum was relatively slow. All local buyers were more cautious.