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Home / Markets

Mosaic faces weak demand for potassium chloride

 avatar Kirill Shakin
December 16, 2022, 4:00 pm
December 16, 2022, 4:00 pm
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Mosaic faces weak demand for potassium chloride
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The American company Mosaic has temporarily decreased the production of potassium salts at the Colonsay mine (Saskatchewan, Canada). Before this decision, its capacity was 1.3 million tons of potassium salts per year, and after the repair of the second enrichment unit, it should have reached 1.8-2 million tons by the end of next year. The potassium chloride output will be reduced as well.

However, demand for potassium fertilizers is recovering much slower than expected, so Mosaic’s accumulated stocks are sufficient to fulfill it.

“Our decision to temporarily cut production at Colonsay reflects short-term dynamics but not long-term global market fundamentals,” said Mosaic President Joc O’Rourke. “We believe that after reducing the application of potassium chloride, farmers have the incentive to maximize yields, which should lead to a significant recovery in demand in 2023.”

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