IFA '07: Potash producers to raise Europe H2 prices

ISTANBUL (ICIS news)--European suppliers are aiming to increase  prices for standard grade potassium chloride (MOP - muriate of potash) by a minimum of €20/tonne ($27/tonne) in second-half 2007 contracts, sources said on Monday.

Speaking on the sidelines of the IFA conference in Istanbul, sources said suppliers were looking to reduce the differential between standard and granular MOP prices in Europe.

The differential has traditionally been around €20/tonne but was slightly higher at present, sources added.

Granular MOP prices were increased by around €12/tonne to a range of €187-191/tonne CFR (cost and freight) NWE (northwest Europe) in April. First-half contract prices for MOP were agreed at around €155/tonne CFR NWE.

International MOP prices have increased this year amid tight supply and good demand. The principal potash suppliers include Germany’s Kali & Salz and Israel Chemicals.

The IFA conference runs from Monday to Wednesday.

($1 = €0.74)