By Ksenia Annenkova
According to the contract, each metric tonne of potash chloride is to be sold for $470, with delivery to the buyer’s port. In total, 400,000 tonnes have been ordered, with an option for a further 100,000 tonnes. The contract runs from April 1st until June 30th.
The previous six month contracts between the BPC and Sinochem and CNAMPGC finished in late 2011, with potash chloride also being sold at $470 per tonne. Consumption of potash chloride in China amounts to 9-10m tonnes per year, while total imports stand at 5-6m tonnes. Russian and Belarusian potash chloride accounts for around 50 percent of that used.
“This agreement with our Chinese partners has been concluded during a period which is positive for the global potash market. Macroeconomic risks are falling, stock balances of potassium are declining gradually and the agro-market is seeing prices rise. A gradual increase in buying activity is being observed on key markets. This contract will enable us to increase capacity at our major shareholders: Uralkali JSC and Belaruskali JSC,” comments BPC’s Director General, Valery Ivanov.
“The signing of the contract eliminates anxiety and uncertainty regarding the market. The ‘bottom price’ has been determined, giving buyers confidence while stimulating their activity worldwide. This is an important and significant step in the formation of the market environment for 2012 and, undoubtedly, the overall trend will be positive,” believes Filipp Gritskov, the Head of the BPC’s PR Service.