Potash Selling Prices Showed Strength in 4Q17

Potash prices have been higher than levels last year. This strength in potash prices was also evident in the 4Q17 earnings of the five players discussed below.

Year-over-year, potash prices for each of the five companies (MXI) in the above chart rose in double digits. Intrepid Potash (IPI) saw the steepest increase in prices year-over-year by ~34% to $224 per metric ton from $168 per metric ton a year ago in 4Q16. Agrium (AGU) followed with its selling price increasing by as much as 23% year-over-year to $221 per metric ton from $179 per metric ton a year ago. PotashCorp (POT) (NTR) also saw its potash prices rise 16% year-over-year to $182 per metric ton from $157 per metric ton.

The Mosaic Company’s (MOS) potash selling price rose 10% year-over-year to $188 per metric ton from $169 per metric ton, and Israel Chemical’s (ICL) prices rose 10% year-over-year to $222 per metric ton from $202 per metric ton a year ago in 4Q16.

Next, we’ll discuss the gross margin performance for the potash segment.