Potash market is now a big contract low price rumors

In the second half of this year, the price of China's potash fertilizer contract negotiations will be around US$260/tonne. This rumor implies that the port price in the late period will fall by another RMB 300/ton at the current level. The author believes that for this rumors, the market should be treated rationally. On the one hand, it is the market that looks at the hollow state of the expected decline in the price of potash fertilizer. On the Other hand, it is also possible that China’s large-scale traders deliberately lower prices with international suppliers and strive for lower import prices. In either case, however, international price pressures are not bad for Chinese traders and downstream factories, but for domestic potassium, price pressures will suddenly increase. The author believes that the price reduction of potash is imperative. However, if the signing of the contract in the second half of the year and the signing of the price should be further observed, it is not enough to affect the domestic price at present. China's self-regulation will gradually advance with the degree of domestic competition.