Supply & Demand

Globally, the demand environment for potash is much more balanced than the supply environment. The majority of the market is split among south and east Asia, Latin and North America, and west and central Europe. China, the United States, Brazil, and India are the major potash-consuming countries, which together represent about two-thirds of world potash consumption.

China is normally the world’s largest consumer of potash, reaching peak consumption of 10.2 million tonnes KCl in 2007, or about 17% of the total. Even amidst the start of the economic downturn in 2008, China still consumed 9.2 million tonnes KCl. China’s demand for potash has been consistently growing over time, heavily contributing to overall consumption growth in Asia.

The United States is the world’s second-largest potash consumer. The U.S. uses potash primarily for the production of corn, soybeans, cotton and wheat.

Brazil is typically the third-largest potash consumer. The country uses most of its potash to produce sugar cane. In 2007, the country produced 550 million tonnes of sugar cane and consumed approximately 6.8 million tonnes of potash.

Potash Production and Consumption

There are few potash producers (12 countries) and many consumers (approximately 150 countries); Brazil accounts for 80% of Latin America consumption.