Potassium fertilizer has potential for development due to demand

The global economy is gradually slowing down, especially in the United States. Changes in the Fed's policies reflect the fact that the economy is experiencing low-speed economic growth and the prices of commodities are fickle. Some mining companies and investors find it difficult to predict future market trends. In the past, the more popular precious metals market fell to the lowest point in history this year. However, in such a sluggish market, the stocks of chemical fertilizers and agriculture are out of the ordinary. They have maintained a good momentum in the mid-to-long-term trend and have aroused the interest of investors.

Fertilizer prices stabilize

Potassium fertilizer is particularly prominent in the stocks of nitrogen fertilizers, phosphate fertilizers, and potash fertilizers. The price of food has recently declined, but recent fertilizer prices, especially potassium, have been relatively stable. According to the latest data, the consumption of potash fertilizer is gradually increasing and will reach about 55 million tons next year. The current situation of low food prices and stable potassium fertilizer prices will continue until next year. Some experts predict that food prices have bottomed out and will rise in the future as fertilizer prices rise. At present, the price of corn is 3.5 US dollars per unit, and the highest is 8 US dollars per unit. It can be imagined how low the price of food is now. If grain prices are lower than the farmers' production costs, the food produced will be stored in large quantities, reducing the amount of market circulation. As a result, supply is reduced, and as demand continues to rise, food prices will surely be raised. Fertilizer prices, which are closely linked to food prices, will also rise accordingly. According to previous years' experience, the negotiating prices of exporters of potash fertilizers in China, India, and potash are indicators of the annual export prices of potash fertilizers. During the negotiations between Canadian potash fertilizer and Ural potash fertilizer companies, the price of potash fertilizer stabilized at US$310 per ton, which is the potash price in the second half of the year. Set the tone.

Potassium rigid demand persists

Experts said that this year's food is not only low in price, but also low in quality, which has given birth to the use of high-potassium and high-nitrogen fertilizers to increase crop productivity and restore soil fertility. Potash Corp. of Canada predicts that global potash fertilizer demand will maintain a slow growth trend after breaking ice at the beginning of the year. Whether from the perspective of demand or scientific fertilization, the surplus of potash will not happen in a short time. The company is optimistic about the future of potash fertilizer, so the company has maintained a high operating rate and shipment volume, and this state will continue By 2015.

Potash Corp. of Canada specifically mentioned that the role of the Chinese market in the global market is extraordinary. China will continue to be a strong buyer's market and will promote global potash pricing. At present, the price of potash fertilizer is at a low level, which also has certain benefits in stimulating demand. In addition, the Ministry of Agriculture has found that the lack of nutrients in the soil is becoming more and more serious. When the fertilizer price is low, farmers are more willing to spend less money to invest in crops. Not only in China, but also in some areas of North America soil nutrients are also decreasing. Increasing the use of potash fertilizer has already been implemented in some regions.

Ural Potash Corp. did not respond to whether the price of potash rose, but the potash demand actually exceeded the company's expectations. Since Uralk Potash's “unofficial” withdrawal from the BPC alliance in 2013, it once set off waves in the potash industry. Some people think that prices will collapse from this point, but this is not the case. Although the price of potash has declined, it has remained stable. Analysts said that the demand for potash fertilizer in China and Brazil remained strong, and recently Brazilian sugarcane used a large amount of fertilizer. It has already signed an import purchase price of 380 yuan/ton with Ural Potash Corp.

From the perspective of world population development, according to the statistics of the United Nations, by 2050, the world’s population growth will increase from 7 billion to 10 billion. The increase in population will increase the demand for food, which is positive for the future prospects of potash fertilizer. news. In addition, the African continent is also an emerging market in the future. The agricultural output value will reach 500 billion U.S. dollars from 280 billion U.S. dollars in 2010 to 2030. Among them, pesticides, machinery, seeds, fertilizers and other industries will be developed one by one. In addition, Africa’s labor resources are also very rich. In the future, market-oriented rural employment and technology transfer will contribute to the sustainable development of agriculture.