# Potash: Trading

How China and India's contracts set everyone's price

Source page: https://www.materialinsights.org/commodities/potash/trading/

How China and India's contracts set everyone's price What this tab covers How and where it is bought and sold: who buys and sells, exchanges and benchmarks, contract types, the big trading houses and how prices are discovered.

There is no deep futures market. Most potash moves under negotiated contracts between a few producers and large buyers. Annual supply contracts with China and India have long served as reference points for everyone else. Price-reporting agencies such as Argus, CRU and Fastmarkets assess spot prices by region and grade. Canadian producers sell offshore through a joint marketing company, Canpotex. Conway (pdf p. 140) describes the trade as opaque and cartel-like, with producers managing output to defend prices.

#### Where it is bought (buyers)

- Brazil's distributors and blenders buy granular MOP on spot and short-term contracts
- Chinese state buyers (Sinochem, CNAMPGC and others) and India's IPL sign annual contracts
- US Midwest dealers buy Canadian potash by rail
- Southeast Asian plantations (Indonesia, Malaysia) buy for oil palm

#### Where it is sold (sellers)

- Canpotex exports for Nutrien and Mosaic from Saskatchewan via Vancouver and Portland
- Belarusian Potash Company and Uralkali sell from Belarus and Russia via Russian Baltic ports
- K+S from Germany and Canada; ICL and Arab Potash from the Dead Sea; Laos producers into China and Southeast Asia

#### Exchanges and benchmarks

| Venue | Contract | Notes |
|---|---|---|
| **No liquid exchange market** | No MCX, NCDEX or LME contract | Prices set in bilateral and annual contracts and assessed by price reporting agencies |

#### Contract types

- Annual import contracts with China and India (India $349/t CFR in 2025 and $383/t in 2026; China $346/t and $348/t)
- Spot cargoes to Brazil and Southeast Asia priced CFR
- Rail-delivered summer-fill and seasonal programmes in North America
- Domestic Indian sales at MRPs supported by the nutrient-based subsidy

#### Top trading houses

- Canpotex
- Belarusian Potash Company
- Uralkali Trading
- Indian Potash Ltd (state-linked importer)

#### How prices are discovered

- China and India contract settlements
- Brazil CFR and Southeast Asia CFR assessments by Argus, CRU, Profercy and Green Markets
- World Bank monthly potassium chloride series

## Other sections

- [Summary](https://www.materialinsights.org/commodities/potash/index.md)
- [Overview](https://www.materialinsights.org/commodities/potash/overview/index.md)
- [Correlation](https://www.materialinsights.org/commodities/potash/correlation/index.md)
- [Extraction](https://www.materialinsights.org/commodities/potash/extraction/index.md)
- [Production](https://www.materialinsights.org/commodities/potash/production/index.md)
- [Stocks](https://www.materialinsights.org/commodities/potash/stocks/index.md)
- [Cycles](https://www.materialinsights.org/commodities/potash/cycles/index.md)
- [Movement](https://www.materialinsights.org/commodities/potash/movement/index.md)
- [Criticality](https://www.materialinsights.org/commodities/potash/criticality/index.md)
- [Characteristics](https://www.materialinsights.org/commodities/potash/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/commodities/potash/emissions/index.md)
- [Relationships](https://www.materialinsights.org/commodities/potash/links/index.md)