Recently, global potash leaders Nutrien and Mosaic released their annual reports, offering a positive outlook for 2024. Both anticipate steady global demand increases for potash, maintaining an optimistic industry perspective.
Nutrien reported a net profit of $176 million for Q4 2023, with annual profits reaching $1.3 billion and a 5% year-over-year increase in potash sales, totaling 13.22 million tons. Notably, North American sales surged by 30%, while international sales slightly declined due to logistical challenges and reduced shipments to India and Southeast Asia.
For 2024, Nutrien forecasts global potash demand between 68 and 71 million tons, driven by tight inventory in North America and significant demand increases in Southeast Asia due to lower stock levels and the profitability of major crops like palm and rice. Despite expected declines in Chinese imports, global demand remains high, supported by increased consumption and the expansion of soybean cultivation in Brazil.
Conversely, Mosaic reported a 28% decrease in annual revenue to $13.7 billion, with potash sales dropping by 38%. However, potash volumes increased from 8.1 to 8.9 million tons. Despite operational challenges at the Canpotex port in Oregon, operations resumed in December. Mosaic has adjusted its production strategy in response to market conditions, anticipating sales of 2 to 2.2 million tons in the first quarter.
Mosaic's 2024 outlook acknowledges challenges like geopolitical instability and extreme weather but expects strong global grain and oilseed market demand to continue driving potash needs. With robust agricultural conditions and favorable economic factors, farmers are encouraged to maximize yields and fertilizer use, supporting steady potash demand, particularly in North America and Brazil, while Indian demand awaits higher government subsidies.
Overall, both companies exhibit an optimistic future market view, with continued growth in global agriculture and renewable fuel demands driving ongoing increases in potash demand.
Attention: The above information is for commercial reference only due to the diversity of information collected, and Kelewell is not responsible for the authenticity of the data.
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