Phosphate and Potash Outlook 2020
As we turn the page to a new decade, it’s useful to take a look back at how phosphate and potash markets fared in 2019, as well as what we’re watching for in 2020.
After marching higher in 2018, wholesale phosphate and potash prices came under pressure last year as increasing supplies outpaced tepid demand. Exacerbating the price impact was a common feature of many commodity markets: Buyers pulled back from the market and instead drew down inventories as they awaited a “bottoming out” of the market price.
Such demand deferral sustains the downward momentum of pricing until such time that buyers must return to the market to replenish their supplies and/or they sense a unique opportunity to secure volume at a bargain price.
That time appears to have arrived. This tees up a couple of key questions: What were the key drivers that put prices under pressure? And could they persist or reassert themselves in 2020?
Click Here to read more.
After marching higher in 2018, wholesale phosphate and potash prices came under pressure last year as increasing supplies outpaced tepid demand. Exacerbating the price impact was a common feature of many commodity markets: Buyers pulled back from the market and instead drew down inventories as they awaited a “bottoming out” of the market price.
Such demand deferral sustains the downward momentum of pricing until such time that buyers must return to the market to replenish their supplies and/or they sense a unique opportunity to secure volume at a bargain price.
That time appears to have arrived. This tees up a couple of key questions: What were the key drivers that put prices under pressure? And could they persist or reassert themselves in 2020?
Click Here to read more.