Potash providers fear pact collapse as China buyers push for lower prices

An annual deal has yet to be finalized between potash suppliers and China-side buyers in February, fueling fears that the world’s top consumer of the agricultural nutrient will turn to the spot market, Bloomberg reported, citing industry insiders and analysts. Emboldened by higher inventories at home and falling prices on the spot market, Chinese consumers are debating potash’s price, which producers want to see increase. China’s consumption of potash has underpinned the industry for more than a decade, and producers are now concerned the lack of agreement will collapse the system.