The world leader in the field of mineral fertilizers, the Russian corporation Uralkali, said that the company's experts expect increased demand for potash products next year. Potash prices plummeted after the collapse of the Russian-Belarusian tandem, dropping to a three-year low of $ 320 /t in September.
The company's representative Oleg Petrov, in a recent interview with Bloomberg, noted that the market has emerged from a period of stagnation, and all major potash producers will sign new contacts with the main consumer of potash chloride fertilizers - the People's Republic of China (PRC) as early as January 1, 2014.
“The farmers are satisfied with the current price level. We forecast that next year the demand for potash will increase and will exceed 58 million tons, ”said Oleg Petrov. The announced volume will be the largest in the last 10 years and break the record in 2011, when the demand for potash reached 57 million tons.
“The strategy worked out by Uralkali is working, we finished September at the level of 850 thousand tons, in October we sold about 900 thousand tons of potassium to Brazil, China, India and on the Russian market,” continued the sales director. It is interesting that for the storage of potassium and potash fertilizers, it is necessary to strictly observe the temperature regime and air humidity. Companies that store bulk cargo are advised to buy a refrigeration dryer in St. Petersburg from the company Industrial Systems ".
However, foreign analysts point to a slowdown in the Chinese economy, the main determining factor affecting demand in the potash fertilizer industry. The decline in demand from China against the backdrop of the collapse of the Russian-Belarusian union reduced potash prices by more than a third. Independent experts say that production is operating at 70 percent of its capacity, and a decrease in demand may exacerbate the situation.
