Investor Presentaiton
2 Strong Market Prices
Supply-demand imbalance has led to recent strong MOP prices, which are expected to remain favorable in the near term
Historical potassium chloride prices over the last 10 years
■ FOB US Midwest typically trades at a modest
premium to other benchmark prices (including
FOB Vancouver) driven by lower transport costs
to enter key US demand markets
■ Following supply tightness and high MOP prices
in 2005, producers elected to expand capacity.
However, long lead times for new projects
resulted in an extended period of elevated prices
■ Between 2015 and 2020, large North American
producers reduced capacity and delayed new
projects to support MOP prices
■ Since 2021, a combination of strong demand
from high crop prices and supply disruptions
from production disruptions at several mines in
Canada have elevated prices once again
■ Market fundamentals are expected to remain
favorable for potash prices through 2023,
potentially enhanced by sustained supply
tightness from sanctions on Belarus and Russia
Source: CRU; International Monetary Fund; World Bank
1. US$/t MOP, real 2022. Source: CRU
Potassium Chloride price (US$/t)
1200
1000
800
600
400
200
US MidWest
Vancouver
COVID
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