Potassium Chloride Market 2022: Prices Rise 50% After Sanctions Against Belarus
A prolonged price hike is expected in the global potassium chloride (POM) market due to expected supply chain disruptions after the US, UK, Canada and EU countries imposed sanctions on a major supplier, Belarus Potash Company (BPC). Another factor in the price growth will be Canada’s limited exports. MOP prices have already started to increase in Brazil due to supply delays.
LOS ANGELES, January 7, 2022 (GLOBE NEWSWIRE) – According to a recent report from a market research firm IndexBox, the average annual price of MOP is expected to increase by 50% year-on-year to nearly $ 325 per tonne in 2022, according to World Bank forecasts. Sanctions against the Belarus Potash Company (BPC) imposed by the US, UK, Canada and the EU could lead to global supply chain disruptions. Combined with limited production in Canada, the main supplier of the global potassium chloride market, this can cause local shortages in consuming countries and drive up prices. World Bank data indicates that the average price of MOP was $ 221 per tonne in November 2021.
Supply delays hit Brazil hardest, pushing spot prices for potassium chloride to $ 825 per tonne in the first week of November 2021. Shipments from Canada, Russia and the United States Belarus constitute 84% of the volume of Brazilian imports of MOP.
Under pressure from sanctions, Belarus is redirecting its export flows to countries in Asia and South America, dramatically increasing the supply of MOPs from China, Thailand, Korea, Malaysia and from Argentina. Belarus occupies third place in the ranking of the main exporters of potassium chloride, after Canada and Russia.
Main exporters of MOPs in the world
Canada was the main exporting country with an export of around 21 million tonnes, which finished at 42% of total exports. Russia (9.2 million tonnes) was second in the ranking, followed by Belarus (7.7 million tonnes), Germany (3.4 million tonnes) and Israel (3.3 million tonnes). All these countries together occupied approx. 47% share of total exports. Jordan (2 million tonnes) and the United States (1.2 million tonnes) took a minor percentage of total exports.
In terms of value, Canada ($ 4.5 billion) remains the largest supplier of potassium chloride in the world, accounting for 37% of world exports. The second place in the ranking was occupied by Belarus ($ 1.9 billion), with a 16% share of world exports. It was followed by Russia, with a share of 14%.
Main importers of MOPs in the world
The United States (12 million tonnes), Brazil (11 million tonnes) and China (8.8 million tonnes) accounted for about 58% of total potassium chloride (MOP) imports in 2020. India (5.1 million tonnes) had a 9.3% share (tonnes basis) of total imports, placing it in second place, followed by Indonesia (5.2%). The following importers – Malaysia (1.3 million tonnes), Belgium (1.1 million tonnes), Vietnam (1.1 million tonnes) and Poland (1 million tonnes) – each finished at a share of 8 , 1% of total imports.
In terms of value, Brazil ($ 2.8 billion), the United States ($ 2.5 billion) and China ($ 2.1 billion) appeared to be the countries with the lowest import levels. higher in 2020, together accounting for 55% of world imports. India, Indonesia, Malaysia, Belgium, Vietnam and Poland lag somewhat behind, accounting for an additional 23%.
IndexBox is a market research company that develops a market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on the consumption, production, trade and prices of more than 10,000 different products in 200 countries.
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Companies mentioned in the report. Potassium Chloride Manufacturers
Belarus Potash Company, Aarti Industries, Israel Chemicals, Uralkali, Cargill, Agrium, JSC Belaruskali, PotashCorp, Jiangsu Kolod, Nanchang BASF, Surya Fine Chem, Bostick & Sullivan, KS Kali GmbH, Mark-Chem, Heena Pharm, K + S Group , AKSELL, Mayur Chemical Industries, Lianyungang Hengsheng, Shaanxi Top Pharm, Superior Supplement Manufacturing, Superior Supplement Manufacturing, Tricura Gmbh & Co., Aurepio, Calmags Gmbh, Compag Handels Gmbh, JÃ¤klechemie Gmbh & Co., Donauchem Gmbh, Prochem.
CONTACT: Contact Information Mekhrona Dzhuraeva Editor [email protected]