Potash Market Outlook

Arable land per person has been steadily decreasing, thus increasing the need for higher crop yields. Potash demand has grown at a Compound Annual Growth Rate of 3.19% from 2010 to 2019.

 

Current supply is tight due to recent mine closures and supply discipline form key producers.

Global population is expected to continue to grow.

Muga will hold an advantageous position within the premium European market, where prices are performing better than in other markets.

Why potash now?

Recently potash prices have been subject to downward pressure due to high stocks and Covid-19 demand impact. Prices have started to recover during 2020 Q3, this trend is expected to continue throughout the year. In the long term, with the global population growing, demand for food increasing and arable land decreasing this will drive the need to increase crop yields which in turn will drive demand for fertiliser and potash.