Slump in Canadian potash exports continues

15 June 2009 11:12  [Source: ICIS news]

LONDON (ICIS news)--Shipments of potash from Canada to the US have continued to slump since the start of the year, according to April 2009 data from the US Department of Agriculture (USDA) received late last week.

Exports of potassium chloride (MOP) from Canada to the US were down by 70% in January to April 2009 at 1.365m short tons, compared with 4.531m short tons in the same period of 2008, according to the USDA figures.

Moreover, shipments declined every month since January, with only 219,000 short tons of MOP imported into the US in April, 1m short tons less than in April 2008.

US fertilizer distributors said that concerns about the very high price for potash had led to a collapse in demand during the spring season, which was just ending.

Importers told ICIS’ fertilizer report The Market that dealers were unwilling to buy MOP at current asking prices – in the $500s/short ton ex-terminal - firstly because farmers would not pay that much and secondly because they feared a sharp drop in prices during the second half of the year.

The US is by far the largest and most important export market for Canadian potash suppliers. In 2007, it accounted for 42% of total MOP exports from Canada, according to statistics from the International Fertilizer Industry Association (IFA).

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By: Stephen Mitchell
+44 20 8652 3214

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