Canpotex announces $100/t SE Asia potash hike

22 January 2008 16:29  [Source: ICIS news]

LONDON (ICIS news)--North American potash supplier Canpotex has announced a $100/tonne (€69/tonne) price increase for standard and granular MOP (muriate of potash) in southeast Asia, market sources said on Tuesday.

The need for the price increases was attributed to record potash demand, low inventories and very tight supply situation.

Second-quarter shipments of standard MOP to southeast Asian markets will be priced at $525/tonne CFR (cost and freight), up $100/tonne from first-quarter shipments.

Granular MOP prices will be set at $540/tonne CFR.

Other suppliers said they thought this price was a little low given that others, including International Potash Co (IPC) and Belarusian Potash Co (BPC) had achieved first-quarter prices of $450-500/tonne CFR.

In addition, IPC has sold a spot cargo for first quarter delivery to the region at $525/tonne CFR.

Other suppliers thought that $550/tonne CFR would be achievable for second-quarter shipments.

Canpotex, the world's largest exporter of potash, is an international marketing and distribution company wholly owned by the Saskatchewan, Canada, potash producers: Agrium, Mosaic and PotashCorp.

($1 = €0.69)

By: Rebecca Clarke
+44 20 8652 3214

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