The State of Salt

With the 2019-2020 Winter fast approaching, we want to bring you up to speed on the raw material supplies of winter deicers and how it affects the Midwest. A recent article from Snow Magazine outlines some of the dynamic forces that affect supply and pricing of road salt. 

Industry insider Rob S. English explains that in his over 40 years of winter product supply experience, “I’ve not seen such wide variations in road salt pricing across the US as I am seeing right now.”

In the Heartland of America in the snow belt, where Kansas City is, supply issues with salt and heavy rains will affect salt prices this Winter. 

The Snow Magazine article cited above explains the factors that affect salt price: 

• Because salt is one of the most inexpensive commodities on the planet, mining and transportation are generally 80 percent or more of the cost by the time it reaches end users.
• There is not sufficient domestic North American production of road salt to supply the central US market. That market must have imported salt and that imported salt relies heavily on the waterways to move product to strategic piles.
• Further stinging the salt market in the Midwest this year is the on-going high water in the Mississippi and adjacent waterway systems with some impassible. These rivers are vital transportation corridors for bulk commodities, and the high water has prevented barges and vessels from getting up and down the river. 

• In summary, because of weather, transporters cannot get salt up the river and there is not sufficient domestic supply to cover demand if winter comes in. If it were to snow early and hard, that will quickly deplete on-the-ground supplies with limited reloading. If snow arrives late and hard, the same situation will drive panic. If it doesn’t snow or is a mild winter, then all will be fine.