MARKET REPORT OF THE MONTH Potassium Salts

element in agriculture and industry. Since 1945, the growth of ... for our potash imports are Spain, France, West Germany, and. Canada. In the face of...
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M A R K E T O F T H E

R E P O R T M O N T H

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Potassium Salts Potash consumption continues to rise, encouraged by market stability and gains in the use of nitrogen

MAJOR PRODUCERS

American Potash and Chemical Corp.

Duval Sulfur and Potash Co.

Potash Co. of America

Southwest Potash Corp.

United States Borax and Chemical Co.

International Minerals and Chemical Co.

National Potash Co.

Bonneville Ltd.

Price stability, continuing exploration, and expansion of output explain the ability of the potash industry in this country to meet the constantly rising demand for this essential element in agriculture and industry. Since 1945, the growth of potassium salts in agriculture has been about 9% per year, and for chemical uses approximately 3.6%. Marketing statistics for potash are very ably collected and organized by the U. S. Bureau of Mines and the American Potash Institute. Final figures are not available at this writing; however, production of the salts for the calendar year 1959 has been estimated at about 2.4 million tons, and their use at 2.5 million tons. Both totals represent increases over 1958. The need for potassium salts on the nation's crops has been demonstrated in many ways. To cite just one recent example, the API shows that forage grass is badly in need of potash, espe­ cially when increased amounts of nitrogen are used on this crop. Members of the institute are—the American Potash and Chemical Corp.; the Duval Sulphur and Potash Co ; the Potash Co. of America; the Southwest Potash Corp.; and the United States Borax and Chemical Corp. Among the nonmembers are the International Minerals and Chemical Co.; National Potash Co., a joint operation by Freeport Sulphur—Pittsburgh Consolidation Coal Co.; and Bonneville Ltd. , the latter operating at Wendover, Utah. The greater share of the domestic potash supply is obtained from ores such as sylvinite in the Carlsbad, Ν. Μ., area and from California lake brines. The international picture in potash recently has undergone some notable changes. East Germany has suspended her shipments of the salts to the United States market with the explanation that she is henceforth giving prior consideration to trade with the Soviet Bloc and the Middle East nations. East Germany is said to be the largest exporter, and is credited with sales to 43 countries involving about 1 million tons of potash. East German exports of potassium salts to the U. S. have been running between 40,000 and 60,000 tons per year; roughly, something over 20% of potash exports to the U. S. Other sources for our potash imports are Spain, France, West Germany, and Canada. In the face of some very trying circumstances, Canada ap­ pears to have gotten her newly developed potash industry off the ground in 1959, at least temporarily. Potash Co. of America is reported to have been the only recent producer in the Saskatch­ ewan area and temporarily has been forced to shut down. Flood­ ing is said to be one of the difficulties at the mines. Others operating in the Canadian industry are International Minerals and Continental Potash. VOL. 52, NO. 3

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MARCH I960

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MARKET

POTASSIUM SALTS Imports" Total 1957

280

1958

331

1959»

38ό

K20 Equivcilent 1957

166

1958

191

1959»

225

« = Thousands of short tons. * = Includes Canadian imports of 14,359 tons of salt equivalent to 8683 tons K2O.

REPORT

OF

THE

MONTH

According to trade advices, Canadian shipments were made early in the year to East Canada, later to the United States and Japan. Total shipments for the year are placed at 74,000 tons, of which 8683 tons (K20) went to the United States. Consumption of potash by United States agriculture has been encouraged by stable markets. The contract price for bulk potash currently is 34£ cents per unit of K20 for muriate running 60 to 63% potassium oxide. The price will remain in effect through May 31, which marks the end of the active fertilizer season, then drop to 30 cents per unit for June shipment. Coarse and gran­ ular muriate is 35 cents per unit to the end of May, 30^ cents for June. A schedule for July 1960 and beyond will be estab­ lished later in the year. The domestic industry has not overlooked opportunities for modernization. Within recent years producers operating in the Carlsbad region have gone in for mechanization on a fairly large scale. This has included greater use of continuous mining equipment and conveyor belts, also the increased installation of facilities for granular products. Greater use of nitrogen on major crops as a general thing may necessitate the increased use of potash. Our consumption of nitrogen in agriculture has expanded tremendously. On a 100% nitrogen basis it was only 228,000 tons in 1920. At the close of the war it had grown to 701,000 tons, and at present is over 2 million tons. It is still growing.

CONSUMPTION OF POTASH AGRICULTURAL

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INDUSTRIAL AND ENGINEERING CHEMISTRY

CHEMICAL