Potash will remain in short supply around the world even as more buyers shed their fears of buying from Russia and Belarus, according to the CEO of a leading fertilizer maker.
Shipments from Russia could remain as much as 20 percent below 2021 levels even as access to export markets increases in the coming year, Ken Seitz, interim CEO of Nutrien Ltd., said in an interview on Thursday.
Deliveries from Belarus may be delayed as the country has no port access. Its production could fall by as much as half, he said. The two nations are among the top three producers of the plant nutrient.
“We will have some catching up to do,” Setiz said in a telephone interview. “We will have soils that call for potash.”
Prices soared to multi-year highs earlier this year after Russia’s invasion of Ukraine roiled markets.
Many potash buyers avoided Russian supplies for fear of being caught up in international sanctions.
However, the sale of fertilizers has so far escaped the bans imposed on other commodities. Wholesale prices drop as Russian products find their way to global markets.
Weekly potash wholesale prices in the US and Brazil fell to their lowest levels since March in the week ended July 29, according to Bloomberg’s Green Markets.
Nutrien has announced plans to increase potash production capacity to 18 million tons by 2025, a 40 percent increase compared to 2020. Farmers will buy more potash when it’s available, Seitz said.
https://www.independent.ie/business/farming/news/farming-news/top-fertiliser-producer-says-potash-will-remain-tight-even-as-russia-ships-more-41891377.html The leading fertilizer maker says potash will remain in short supply even as Russia supplies more