OTHER

Canpotex potash sales fully committed through year-end

The world's largest potash exporter reports healthy demand in key offshore market

Staff Reporter

This article is 4 years old. Images might not display.

Canpotex, which sells about 10 million tonnes of potash annually, is the marketing and distribution arm of North America-based owners Mosaic and Nutrien.

It said demand was supported by "solid fundamentals" for agricultural commodities in many growing regions. The focus on food security continues in several of Canpotex's offshore markets.

Canpotex did not disclose any details about the sales, but it appears it has filled a market gap left by industrial action at rival Belaruskali, the world's largest potash producer.

A recent Fitch Ratings report flagged Belaruskali's ongoing operating difficulties as presenting an opportunity for others such as Canpotex and Russia's Uralkali to step in and take up the slack.

The reduced supply could also lead to higher prices.

According to Fitch, buyers are currently focused on securing volumes needed for the upcoming autumn application season and could be more willing to accept higher prices.

Potash spot prices have been under pressure since mid-2019 due to oversupply due to the lack of a new supply contract between the leading potash exporters to China including Canpotex, BPC, Uralkali, ICL and Arab Potash, and significant Chinese importers Sinofert, Sino-Agri and CNOOC.

The new contract settled at US$220 per tonne CFR in April.

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.