Categories: Energy / General Market Commentary
Topics: General Energy / General Market Commentary

Potash Outlook 2017: Oversupply and Demand

Potash Outlook 2017: Oversupply and Demand

2016 saw the closures and layoffs at some notable potash mines. 2017 is poised to look much better for the sector.

For the potash sector, 2016 has been a bit of a challenging year in terms of price and oversupply.

Current prices for the fertilizer are sitting at $224 per metric ton in the US Corn Belt, while prices in Brazil are flat at $237 per metric ton, with standard MOP prices at $243 per metric ton.

That said, potash prices across all three have tapered off significantly throughout 2016–although it did find some stability later in the year.

Overall, prices are down approximately 16 percent since last year, but the Economic Calendar suggests “producers are cautiously optimistic” moving into 2017. The chart below is indicative of potash’s price movement over the year.

While the end of the year for the potash market looks to be subdued, the Economic Calendar notes that it’s not uncommon for the sector. On that note, the Investing News Network (INN) looked into what impacted the sector in 2016, as well as the potash outlook 2017.

Potash overview 2016: oversupply and mine shutdowns

Unfortunately, oversupply has been a common theme in the potash sector in recent years. Since 2013, the fertilizer has been impacted by increasing competition following the breakdown of the partnership between Uralkali and Belarusian Potash Company. As such, global oversupply of the fertilizer continues to hurt the market–and its price–resulting in layoffs and mine closures in the sector.

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