New research clarifies the future of sulfate of potash (SOP) price levels, forecasts supply and demand dynamics

Fertilizer industry looks to “Global SOP Market 2015 – 2020: The Fate of Premium Pricing” from Green Markets for guidance on this high-margin, specialty nutrient

KEENE, N.H.--()--SOP (sulfate of potash) and SOPM (sulfate of potash magnesia) are specialty potassium fertilizers that trade at a premium to MOP (potassium chloride) due to cost of production and, currently, a tight supply and demand balance. Existing producers and new entrants are finding the price levels and relative margins of SOP increasingly attractive as MOP prices come under pressure from a relative state of over-supply.

This dynamic has generally sparked interest in additional investment in SOP to take advantage of the relative price premium. Green Markets new research Global SOP Market 2015 – 2020: The Fate of Premium Pricing, analyzes the market dynamics creating the current premium pricing, and uncovers to what level these premiums can be sustained over time.

Informed by detailed insight of global fertilizer production and consumption as well as Green Markets’ proprietary 30-year market pricing data, the research offers transparency into current market influences and forecasts supply/demand balance and prices.

Neil Fleishman, CFA, Director of Research for Green Markets stated “The global SOP market appears to be under-supplied, with current tightness of the market demonstrating demand for additional global capacity outside China. As we explore upcoming capacity additions there is apparent risk of overbuilding, which could be detrimental to pricing.”

The report includes detailed analysis of:

Global Supply of Sulfate of Potash Through 2020

Global Costs of Production of Sulfate of Potash

Global Demand for Sulfate of Potash

  • 10 year forecasted demand for SOP
  • SOP imports, by country

SOP Startup/Expansion Projects

  • Current statistics on 11 SOP projects across the globe
    • Production Capacity
    • CAPEX and OPEX
    • Target Start-up Date
  • Implications of capacity additions on premium pricing

10 Year Global SOP Supply, Demand and utilization

Current SOP Pricing and Price Forecast to 2020

Overview of the Sulfate of Potash Magnesia (SOPM) Market

Companies analyzed in Global SOP Market 2015-2020 include:

  • Allana Potash Corporation
  • Australia Salt Lake
  • Compass Minerals
  • EPM Mining
  • Intercontinental Potash
  • Israel Chemicals
  • K+S
  • SDIC Xinjiang Luobupo Potash
  • Potash Ridge
  • Reward Minerals
  • Rum Jungle Resources
  • Sirius Minerals
  • South Boulder Mines
  • Sociedad Quimica y Minera (SQM)
  • Tessenderlo
  • Turkmenhimiya
  • Yara

For more information, visit http://www.fertilizerpricing.com/Research/Global-SOP-Market, contact Jonathan Wentworth-Ping, Director of Sales, at jping@green-markets.com, or call +1.603-357-8160.

About Green Markets

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Green Markets has been the most trusted, widely read resource for fertilizer business news, analysis and market activities for over 35 years. Our clients are a virtual “who’s who” of the fertilizer industry, including manufacturers, dealers, transportation companies, traders, investment bankers and many others allied to the industry all over the world.

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Green Markets is a division of Kennedy Information, LLC.

Contacts

Kennedy Information, LLC
Daniel Houder, 603-357-8200
President

Release Summary

Fertilizer industry looks to “Global SOP Market 2015 – 2020: The Fate of Premium Pricing” from Green Markets for guidance on this high-margin, specialty nutrient.

Contacts

Kennedy Information, LLC
Daniel Houder, 603-357-8200
President