Why Potash Prices Rose for Fertilizer Companies in 2Q17
Potash selling prices
Unlike nitrogen prices, potash prices were broadly higher on a YoY (year-over-year) basis in 2Q17. This helps explain why some potash companies saw sentiments improving. On the average, potash prices for the six companies in the chart below grew by a median rate of 8% YoY.
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Prices by companies
On average, Intrepid Potash (IPI) saw the highest growth in price realization, rising 22% YoY to $213 per metric ton, up from $175 per metric ton in 2Q16. PotashCorp (POT) saw a YoY rise of 13% on average, driven primarily by the international market, which saw potash prices rise 29% YoY.
Agrium’s (AGU) prices rose 8% YoY to $210 per metric ton, up from $194 per metric ton in 2Q17. Unlike PotashCorp, Agrium saw a strong growth in price realization in North America, with a 16% YoY rise in that region. AGU’s international market prices grew by only ~6% YoY in 2Q17.
Mosaic’s (MOS) potash prices rose only 1% YoY to $179 per metric ton, up from $178 per metric ton in 2Q16. But Israel Chemical’s (ICL) potash prices fell 2% YoY to $216 per metric ton, down from $221 per metric ton one year previously
Next, we’ll discuss potash margins in 2Q17.