11 June 2010 10:29 [Source: ICIS news]
LONDON (ICIS news)—Germany’s Kali and Salz (K+S) will increase its European granular potassium chloride (MOP) price by €8/tonne ($9.6/tonne) from 15 June, sources said on Friday.
The new price of €305/tonne CIF (cost, insurance and freight)/CFR (cost and freight) represents an €8/tonne increase on the last official price announced by the fertilizer producer in March 2010 of €297/tonne CIF/CFR.
Despite good demand in the European market, K+S was careful not to hike prices by too much so as to safeguard market stability and demand at farmer level, the company source said.
Farmer demand for potash re-emerged during the first quarter of 2010 following a very weak 2009.
The price rise would also help reduce the differential between European prices and prices in other regions that resulted from the recent devaluation of the euro against the dollar, the source added.
The price increase by K+S followed an announcement by another producer, Belarusian Potash Company (BPC), of a possible €25/tonne rise in European prices effective from 1 July.
K+S granular MOP was priced at a €15/tonne premium to its standard MOP. Sulphate of potash (SOP) would maintain its €70/tonne premium on MOP prices.
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For more on MOP and SOP visit ICIS pricing fertilizers
For more on K+S visit ICIS company intelligence
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