Export Of Potash Fertilizers From Belarus Halved Over Six Months
- 5.08.2022, 10:10
Shipments from Russia dropped by about 25% in the first half of the year, while shipments from Belarus dropped by 50%.
Canadian Nutrien, which is one of the largest producers of mineral fertilizers, has assessed the drop in exports of potash fertilizers from Belarus and Russia in its semi-annual report.
According to the company, shipments from Russia dropped by about 25% in the first half of the year, and from Belarus - by 50%. Most of the Belarusian exports of fertilizers occurred in the first quarter of this year.
"Limited potash supplies from Russia and Belarus kept potash prices at historically high levels during the first half of 2022. Potash supplies from Russia and Belarus have dropped by approximately 25 and 50 per cent, respectively, in the first half of 2022," the company says.
Restrictions on supplies from Belarus and Russia have forced the company to narrow the range of forecasts for potash sales in 2022 to 61-64 million tons. Belstat has not published data on the potash export from Belarus since last summer.
The report also notes the complicated situation in the market for nitrogen fertilizers.
"The sharp rise in natural gas prices in Europe has again caused a decline in nitrogen production in the region. Reduced ammonia supplies in Europe and a significant reduction in Russian ammonia exports from the Black Sea put pressure on global ammonia availability. We expect high seasonal demand for nitrogen in the second half of 2022 following a period of deferred purchases due to base price volatility," the company says.
Nutrien reported second-quarter revenue growth of 49% to $14.5 billion. Its net income tripled to $3.6 billion.
At the end of the half year, revenue growth was 54%. It rose to $22.16 billion, and net income quadrupled to nearly $5 billion.
The company supplied 3.7 million tons of potash to the market in the second quarter, which is 2% more than last year. The company has reduced shipments to North America by 20% and increased shipments to the rest of the world by 13%.
Nutrien's revenues from potash sales increased 3.3 times to $2.668 billion. At the same time, the average selling price of fertilizers was $719, which is 3.2 times higher than in the same period last year.
The company shipped 6.752 million tons of fertilizer to the market in the first half of the year, including 4.6 million tons outside North America. Revenue from potassium increased 3.16 times to 4.5 billion dollars. The average price was $669 per ton, which is 3.17 times more than a year ago.