K+S increases Europe MOP €25/t on high demand

02 July 2008 14:44  [Source: ICIS news]

LONDON (ICIS news)--German potash producer Kali + Salz (K+S) has increased its European granular muriate of potash (MOP) prices €25/tonne ($40/tonne) on strong demand and tight global supply, a company official said on Wednesday.

K+S announced that its granular MOP prices will be €560/tonne CIF (cost, insurance and freight)/CFR (cost and freight) Europe, with immediate effect and until further notice,

This is around €25/tonne higher than the price K+S set at the end of May.

The announcement follows reports by Russian producer International Potash Co (IPC) of a granular MOP sale at €600/tonne CFR for third-quarter delivery to western Europe.

The K+S source recognised the IPC claim, but said it felt €560/tonne CIF/CFR was more reflective of the current market.

International MOP has continued to rise this year due to imbalanced supply/demand and limited supply options in each market.

However, with prices constantly rising, one European buyer said it expected potash consumption to fall soon as consumers look for cheaper alternatives.

Principal potash suppliers in Europe include K+S and Israel Chemicals (ICL).

($1 = €0.63)

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By: Carl Roache
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