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D E C E M B E R / J A N U A R Y 2 0 1 7
pOTash
Potash prices have reached their lowest
level in decades, reflecting a sharp decline
in demand due to slow economic growth
in China and Brazil. Both countries,
along with India and North America, are
responsible for 60% of global potash con-
sumption. However, signs point to another
record harvest in North America along
with robust demand for potash which
is generally used as a fertilizer. Demand
from Latin America is also expected to
be robust. Global supply is estimated
to increase by 3-5% this year, putting
additional pressure on spot prices. Credit
Suisse forecasts potash prices to fall until
at least 2018, as it warns on "false hope" in
the agricultural sector. "We maintain our
view that persistent market oversupply
is the primary culprit for weaker prices,"
says Credit Suisse.
pOTassiUM sUlphaTe
Potassium sulphate or SOP is considered
a premium-quality potash. It is used in
high value crops like fruit, vegetables,
nuts, tea, coffee and tobacco among oth-
ers. Asia Pacific is predicted to emerge as
the fastest growing market for potassium
sulfate in the next few years because of
growing demand for water soluble fertil-
izers in China, India and South East Asian
countries. Growing international demand
for food is expected to support strong SOP
demand in the future.
siliCOn MeTal
Silicon metal is purified elemental silicon
alloyed with significant quantities of other
elements such as aluminum and calcium.
It is used by the chemical industry in the
production of silicone compounds and by
aluminum manufacturers to improve the
useful properties of aluminum, as well as
in the manufacture of silicon wafers used
in photovoltaic solar cells and electronic
semiconductors. Increased demand for
solar panels is expected to boost demand
for silicon metal. However, the silicon
market is relatively small in comparison to
other specialized metals with a projected
size of US $3.4 billion by 2014.
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