Potash fertilizer: the international market pulls the largest increase in fertilizers

In 2021, driven by the international market, the price of domestic potash fertilizer will increase significantly, the largest increase among all fertilizer types

Market price trend of potassium chloride in 2021 (unit: yuan/ton)

The largest increase in all kinds of fertilizers

Monitoring data from the China Agricultural Materials Circulation Association shows that at the beginning of 2021, the wholesale price index of potassium chloride was 1945.

Wang Wenkang, manager of Guangxi Luming Agricultural Materials Co.

"If it hadn't started in October, the state reserve potash fertilizer with a price of only 3,000 yuan was put on the market through auctions and stabilized the price, then the price of potash fertilizer in 2021 would have reached a new level

Another reason for the soaring price of potash fertilizer is the increasing contradiction between supply and demand

The market demand is relatively stable, and the reduction in supply has exacerbated the contradiction between supply and demand in the market, which has raised the price of potash fertilizer

Prices will remain high

"The self-sufficiency rate of potash fertilizer has barely reached 50%, and potassium chloride still relies on imports.

　　At the end of 2021, the carryover inventory of potassium chloride has decreased significantly, and social inventory is unlikely to be much due to poor market conditions; domestic potassium production is decreasing, and it is said that the production will continue to be reduced in 2022; the amount of goods arriving in the bonded area is not much, and the risk of border trade epidemic is again.

　　At the same time, Du Shuangjiang pointed out that the high price of potash fertilizer has encountered bottlenecks in the international and domestic markets, which may lead to weakening of demand

　　Need to pay attention to potash contracts

　　"The large contract price signed every year has a great impact on the domestic potash fertilizer market, and the market outlook should pay attention to the signing of the potash fertilizer contract

　　Qi Zhaoying, a senior potash fertilizer expert, said that he has been staring at big contracts recently, but there is still no news of big contracts

　　It is worth noting that Qinghai Salt Lake recently raised the price of potassium chloride in January 2022 by 300 yuan, and the latest arrival price of the benchmark product 60% crystalline potassium chloride reached 3,490 yuan

　　Du Shuangjiang predicts that the annual price fluctuation range of potash fertilizer in 2022 will be narrower than that in 2021, but it will still be much larger than previous years.