Potash fertilizer: tight supply increases significantly

With the fall of the new year's potash fertilizer contract and the launch of the state reserve potash fertilizer auction, the problem of "not enough" and "unable to eat" of potash raw materials for compound fertilizer enterprises during the spring ploughing period this year may be alleviated

Circulation supply is tight

Due to insufficient potassium resources, more than 50% of China's potash fertilizers depend on imports

From the perspective of imports, customs statistics show that China imported 290,400 tons of potash fertilizers in December 2021, a decrease of 57.

It is understood that on February 2, 2022, Lithuania terminated the cooperation between the railway transportation company and the Belarusian Potash Company

"Although Belarusian potash fertilizer can also be transported to China by rail and car, the loading volume is small, time-consuming and costly

In terms of domestic supply, according to Zhang Jie, a potash fertilizer analyst at Longzhong Information, domestic potassium sulfate plants were mostly overhauled before the Spring Festival, and the operating rate of potassium sulfate enterprises in Mannheim in North China once dropped to about 20%

On the whole, there is basically no potash fertilizer available for sale in the hands of small and medium-sized domestic traders, and the supply of goods is concentrated in the hands of large traders, but most of them rely on national reserves and not much for export

Spring ploughing demand starts

　　More than 90% of potash fertilizers in China are used for compound fertilizer production

　　It is understood that after the start of spring ploughing fertilizers in the Northeast market, most compound fertilizer factories have insufficient raw material reserves, and will be seriously out of stock during the production season, especially large-grain varieties, which continue to maintain a state of hard-to-find goods

　　"Blend fertilizer (BB fertilizer) is the main force in the Northeast fertilizer market, and granular potassium chloride is one of the main raw materials

　　In addition, as food prices rise, farmers are more motivated to grow wheat and corn

　　The price is high and firm

　　Since the beginning of this year, the domestic potash fertilizer price has risen significantly, and the recent signing of the high-priced potash fertilizer contract has further pushed up the price.

　　On February 15, China signed the 2022 annual potash fertilizer shipping contract with Potash.

　　Zhao Yubin, Shanxi Regional Manager of China-Arabic Fertilizer Co.

　　As of February 18, the ex-factory price of domestic Mannheim potassium sulfate 52% powder was mostly 4300~4400 yuan, an increase of 600~650 yuan compared with the same period last year; the arrival price of 60% potassium chloride crystal of Qinghai Salt Lake Co.

　　"Although domestic potash fertilizer production is slowly increasing, this year's potash fertilizer contract orders will not be fulfilled until late March at the earliest, so it is difficult to meet the current fertilizer demand of small and medium-sized compound fertilizer enterprises