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US Potash Demand to Rise on Slight Uptick in Cropland Planted

by Corinne Gangloff

August 20, 2021

Cleveland, OH, August 20, 2021 — Potash demand in the US is forecast to increase 1.6% annually in volume terms through 2025, according to Potash: United States, a report recently released by Freedonia Focus Reports. Gains will be driven by slight upticks in cropland planted over the forecast period. Further growth will be limited by the use of more efficient fertilizers and application techniques, such as those minimizing or eliminating tilling in favor of surface application. Potassium chloride will continue to account for the vast majority of consumption.

US production of potash is projected to see 19% annual growth through 2025. Only three companies – Compass Minerals, Intrepid Potash, and Mosaic – produced potash in the US in 2020. Michigan Potash & Salt is expected to break ground on new potash operations in Fall 2021 and open in 2024, contributing to production increases over the forecast period. Increased domestic production capacity will result in a slight reduction in import penetration. Nevertheless, the US will remain largely dependent on imports to satisfy domestic demand. However, Belarus, a major exporter of potash, is facing politically fueled sanctions that may stress the global supply. Further, Mosaic cut production at two mines in Canada, encouraging US companies to increase production.

These and other key insights are featured in Potash: United States. This report forecasts to 2021 and 2025 US potash demand and production in metric tons of equivalent potassium oxide content. Total demand is segmented by product in terms of:

  • potassium chloride
  • potassium sulfate
  • potassium magnesium sulfate
  • other products such as potassium nitrate and potassium-sodium-nitrate mixtures

Total demand is also segmented by application as follows:

  • fertilizer
  • non-fertilizer

To illustrate historical trends, total demand, total production, the various segments, and trade are provided in annual series from 2010 to 2020.

Demand is provided in terms of metric tons of equivalent potassium oxide content, which varies by product type. Potash compounds such as potassium hydroxide and potassium carbonate that are products of potassium chloride are not included in this report. Re-exports of potash are excluded from demand figures.

More information about the report is available at:

https://www.freedoniafocusreports.com/Potash-United-States-FF65021/?progid=91541

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