Pricing

Potash prices were relatively flat for nearly two decades. Between 1980 and 2003, the average potash price was a little more than US $100 per tonne. Rising potash demand caused prices to skyrocket in 2008 to US $601 per tonne. This was a result of limited global supplies, limited arable land and mine depletion.

2010

Potash prices in 2010 were down from the prices set in 2009. The average FOB spot price in Vancouver for 2010 was US $343 per tonne. This was a 40% decrease from the 2009 average of US $570 per tonne.

2011

Prices were steadily increasing during the fourth quarter of 2010 and continued to improve into the first quarter of 2011. The average price in the first quarter of this year was US $398 per tonne. This was due largely in part to the positive demand recovery in 2010. The increase in demand drove the inventory levels below the previous five year average, thus increasing prices at a steady pace.

Prices in Vancouver Standard Potash FOB Spot Price (US$ per tonne)*
Source: Integer Focus Report: The Outlook for Potash, Update 2. Integer Research Limited, London, United Kingdom, 2011.