Pricing

Potash prices had been flat  for nearly two decades averaging little more that $100.00MT between 1980 and 2003.  However, rising demand in recent years, combined with limited global supplies and mine depletion, eventually caused prices to skyrocket in 2008.  After years of relative stability, potash prices have more than doubled since 2004. More recently, there have been dramatic price spikes recently (2006) such as 23% in China, 50% in Malaysia and 55% in Brazil – three of the world’s dominant potash consumers. In April 2008 China's Sinofert Holdings Ltd. reached an agreement to pay $400.00 USMT higher than in 2007. This has raised the pice to $576.00 MT for fertilizer delivered to Vancouver BC. As farmers become biofuel miners and the intense pressure on global food production increases, the demand for potash-based fertilizer is expected to continue. 

2009

Potash for delivery to Southeast Asia in early 2009  has remained at more than $900.00 MT since hitting record levels in July.  The largest potash producers agreed to lower prices in July 2009 for Indian customers by almost 26% . Some users delayed purchases while they waited for the larger contracts to be signed. However Chinese contracts are expected to be signed before the end of 2009. Once signed the Chinese accord may boost demand for Potash in Europe and other global markets. Analysts are predicting a significant demand revival once this uncertainty is removed from the market. According to the China Fertilizer Market Weekly  Prices in December  of 2009 moved upward as inventories began to shrink. ( US$ 425.00 - 450/t)  versus ( US$ 404-412t) in November.  Ending the year on a bullish note for Potash pricing.

2010

Current prices reflect the reduction of Potash inventories. According to PCS and the Fertilizer Institute North American potash inventories as of Feb 2010 are 16% below the 5 year average.