BRICS Momentum Outshines Canadian Potash Projects
BRICS Momentum Outshines Canadian Potash Projects
The EU sanctions have caused a significant shift in Russian and Belarus-origin potash by rail to emerging markets. The BRICS countries have been a highlight in this new trend. The Russian Association of Fertilizer Producers (RAFP) claimed at the BRICS Business Forum in Brazil that Russia produced over 63 million tonnes of mineral fertilizers in 2024, of which over 50% went to BRICS countries. On the other hand, Russia stepped up offers of fertilizer donations to certain countries, notably Sri Lanka, where a blocked shipment in the Gulf of Riga turned into a major political win for Russia at the end of 2024. It was carrying 55,000 tonnes of potash for Sri Lanka.
One of the reasons Russia’s fertilizer exports are booming is because Brazil demand is growing at a rapid pace in 2024-2025. Brazil has already increased fertilizer imports from 10.18 million mt in the first half of 2024 to 11.54 million mt in the first half of 2025. Most of Brazil’s purchasing activity in the first half of the year was for nitrogen and phosphate fertilizers, which is notable given the higher prices. As long as potash prices remain below US$400 per tonne, Brazil will increase potash imports to meet the crop demand going into the second half of the year.
Other major fertilizer producers are taking note of Brazil’s fertilizer demand. Both Russia’s Eurochem and US-based Mosaic Company have announced new investments into fertilizer production capacity in Brazil. Eurochem invested over US$1bn in a new phosphate fertilizer plant. It will produce over one million tonnes of phosphate fertilizer at the Serra do Salitre phosphate facility. The Mosaic Company will begin operations at a blending, storage and distribution plant in Palmeirante, Tocantins, Brazil. The processing plant has a capacity of one million tonnes per annum, including warehouse capacity, automated blending and bagging systems that are connected to a rail system linking ports in Northern Brazil.
Christopher Ecclestone
Christopher Ecclestone is a Principal and mining strategist at Hallgarten & Company and is based in London.Prior to founding Hallgarten & Company in 2003 he was the head of research at an economic thinktank in New Jersey which he had joined in 2001. Before moving to the U.S., he was the founder and head of research at the esteemed Argentine equity research firm, Buenos Aires Trust Company, from 1991 until 2001.
Prior to his arrival in Argentina, he worked in London beginning in 1985 as a corporate finance and equities analyst and as a freelance consultant on the restructuring of the securities industry. Earlier, he worked for the Federal and State governments in Australia. He is a native of Melbourne, Australia. He graduated in 1981 from the Royal Melbourne Institute of Technology.
Disclaimer
The content and materials featured or linked to on Mining Network are for your information and education only and are not attended to address your particular personal requirements. The views expressed in this article are those of the columnist and not necessarily of Mining Network Ltd.
The information does not constitute financial advice or recommendation and should not be considered as such. Mining Network is not regulated by the Financial Conduct Authority (FCA), it’s authors are not financial advisors and it is therefore not authorised to offer financial advice.
Always do your own research and seek independent financial advice when required. Any arrangement made between you and any third party named or linked to from the site is at your sole risk and responsibility. Mining Network and its associated writers assume no liability for your actions.
The value of investments and any income derived from them can fall as well as rise and you may not get back the original amount you invested.
