Potash prices have started to normalize following a period of volatility following Russia’s invasion of Ukraine.
“Russian exports dropped sharply after the war in Ukraine began due to financial and logistical challenges. But these problems have since eased,” Campbell said.
Increased exports from Canada, Jordan and Laos have also boosted global supply and brought down prices, adding to the fears of possible oversupply, with a slight improvement in demand expected only in 2025.
During their half-year earnings reporting, major potash producers such as Germany’s K+S sounded optimistic about growing demand and stabilizing prices.
However, analysts have since warned the abundant global supply would put a cap on pricing, dampening the companies’ earnings prospects.
“I don’t think there’s likely to be any sort of premium pricing or any real pricing benefit as a result of the global supply shift and the global trade shift….
