One of the world’s largest potash producers, Uralkali, who is in no hurry to sign at a low price contract with China for supply of its products, agreed with India about sales in 2020 at $230 per ton. Although this level of almost 18% below last year, the company considers it more appropriate to the current situation.Trade structure “Uralkali” “Uralkali trading” entered into an agreement with the largest Indian importer of mineral fertilizers IPL for the supply of potassium chloride in India until the end of 2020. The contract price amounted to $230 per ton on terms of delivery in port of the buyer (CFR). The previous contract with IPL was signed in October 2019 at a price of $280 per ton. In the early weeks of a similar agreement signed a joint trader of the North American producers of potash Canpotex and Belarusian “Belarusian potash company” (BPC, the trader of “Belaruskali”). Traditionally decisive for the potash market are the contracts with China — the big players usually sign them first. However, this year, the major market players in different building your marketing policy. In early may, the BPC agreed with China on potash at $220 per tonne, setting the benchmark for the entire market is $70 per ton (31.8 per cent) below the level of the previous contract. The volume of shipments is not disclosed. According to BPC, the cost of a new Chinese contract “creates a strong Foundation for stabilization, recovery and subsequent progressive development of the global potash market.” At the same time, Uralkali believe that the agreed Belarus price is not optimal for the contract to be concluded for such a long period, and the industry as a whole. A similar opinion was expressed by the head of the canadian Nutrien Charles Magro, noting that “the price of the Chinese contract is too low,” and the company “will have to decide what to do with the terms of the contract and volume of delivery.” Uralkali has not yet signed an agreement with China. As noted by the General Director of “Uralkali trading” Alexander Terletsky, price parameters reached an agreement with India generally in line with market conditions. The conclusion of the contract in the conditions of economic crisis equally in the interests of both consumers and producers, and also makes it possible to preserve the company’s position on one of the key consumer markets.Olga Matushenko
