Asian markets give boost to potash

While slow in Europe and North America, demand for potash continues to grow in Asia, the Middle East and South America, says Roskill Information Services of London in its study, Potash: Market Update, Analysis and Outlook.

The world potash industry may be in overcapacity, Roskill says, but several new projects and capacity expansions are planned and the number of producing countries is expected to increase to 19 from 15 before the end of the decade. Both Israel and Jordan are expanding their Dead Sea evaporation operations; new mine and processing plants are scheduled for construction in Thailand and China; and potash mines are planned for Argentina, Brazil and Chile. The South American projects are a response to expanding fertilizer requirements and the need to reduce regional dependence on North American imports. On the other hand, Kali and Salz are closing two mines, and more capacity closures are likely before the end of the century, especially in Belarus and the Russian federation, the company projects.

Consumption of potash fertilizers will continue to decline in both Western and Eastern Europe until the end of the century, although the rate of decline will stabilize by around 1996, the company says.

Offsetting this decline will be expansions in demand from Asia and the Middle East.

Fueling the Asian demand will be population growth and strengthening economic performance.

Also, strong growth is expected in the use of potassium chemicals in glass and ceramics, particularly potassium carbonate which is produced from caustic potash.