5 Top Phosphate and Potash News Stories of 2018
What were the top phosphate and potash news stories of 2018? With the space looking positive these headlines drew readers in.
Looking back at phosphate and potash news, the two commodities have had a good year. Potash prices enjoyed a small rebound in 2018, though they stayed far from heights seen in 2008. And with the world’s population continuing to grow, so too is the demand outlook for the fertilizers.
Between the two commodities, what were the top headlines in 2018? We’ve compiled a list of our five most popular phosphate and potash news stories of last year — as the list below shows, news about offtake deals, partnerships and prices took the spotlight.
Read on to see what phosphate and potash news in 2018 grabbed the attention of our audience.
1. Rising Potash Prices May Bring Boom to Saskatchewan
First on our list of phosphate and potash news stories is an article from the middle of 2018 covering the rise of potash prices and what impact that might bring for Saskatchewan. There was speculation as to whether that rise would be sufficient to entice BHP (ASX:BHP,NYSE:BHP,LSE:BLT) to kickstart its Jansen potash project, located about 140 kilometers away from Saskatoon.
Production has long been awaited, as BHP began working on Jansen back in 2011; however, it halted the mine’s development in 2017, citing poor market conditions. If the project started up again, how would this impact the larger potash market? Read on to find out.
2. Danakali Signs 10-year Potash Offtake Agreement with EuroChem
Making headlines in June phosphate and potash news was Danakali’s (ASX:DNK) take-or-pay offtake agreement with EuroChem Trading. The agreement is for the sale and distribution of sulfate of potash from Danakali’s 50-percent-owned Colluli project in Eritrea. Its mine life is expected to last 200 years, with production hitting 472,000 tonnes annually in 2020, and 944,000 tonnes annually in 2026.
What did Danakali CEO Danny Goeman have to say about the deal? Continue reading for more details.
3. Agrium and PotashCorp Combine to Form Nutrien
Our third top phosphate and potash news story of 2018 covers the merger between Potash Corporation of Saskatchewan and Agrium, which joined together to form Nutrien (TSX:NTR,NYSE:NTR) this year. In January, when the story was published, the deal had been approved by antitrust regulators, and Nutrien became the largest potash producer in the world.
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Both companies had to divest offshore interests in order to satisfy regulators, but the merger is expected to save them around US$500 million. Find out how the market reacted to this monumental deal.
4. Mosaic Says Rising Potash/Phosphate Prices Boosted Net Sales
Rising potash and phosphate prices also made headlines in February. Potash producer Mosaic (NYSE:MOS) announced record sales and profits in Q4 2017, citing greater demand from India and China in conjunction with higher prices. The company cited an average price for its diammonium phosphate of around $348 per tonne. Read on for more details.
5. Avenira Says New Phosphate Tech Could be Beneficial
Our final top phosphate and potash news story looks at a new technology that could be hitting the phosphate industry. JDCPhosphate has developed a new process for producing high-quality, superphosphoric acid from low-quality phosphate rock tailings. The process is so effective it can turn 14-percent rock tailing phosphate into 68-percent P2O5 superphosphoric acid.
Avenira (ASX:AEV) has the exclusive rights to use this technology. How does it work? Find out how the process works, how it’s different from others out there and why the company calls this “one of the most significant advancements in many decades for the phosphate industry.”
Based on these phosphate and potash news stories, what do you think is next for the industries in 2019? Let us know your opinion in the comments below.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.