BPC, China ink contract on MOP deliveries in H2 2011
29 June 2011
MINSK (BelTA) – Belarusian Potash Company (BPC) has concluded a contract on MOP deliveries to China in H2 2011, BelTA learnt from Filipp Gritskov, spokesman for BPC, told BelTA.
The contract was signed with Sinochem and CNAMPGC, China’s largest importers of mineral fertilizers. According to the contract, the price for potassium chloride on the CFR delivery terms will make up $470 per tonne, which is $70 higher from the price in H1. The supplies will total 700,000 tonnes, including 200,000 tonnes of mutual optional quantities. The contract is valid from 1 July till 31 December 2011.
Commenting on the contract, BPC CEO Vladimir Nikolayenko noted that the agreement with the Chinese importers would set a new price criterion that would, no doubt, influence the prices on spot markets and parameters of new long-term contracts. “Integration, increasing demand for potash fertilizers and, hence, the growth of prices for potassium are those factors that indicate that the world’s potash market has been steadily expanding. We are confident this tendency will remain in place within the next few years,” he said.
Under the previous contract with Sinochem and CNAMPGC, the BPC exported 600,000 tonnes of potassium chloride to China, including 120,000 tonnes of mutual optional quantities. Price was $400/ tonne on the CFR delivery terms. The contract for H2 expires on 30 June.
The Belarusian Potash company was set up in 2005 by Belaruskali (45%), Uralkali (50%) and the Belarusian Railways (5%). The company is the exclusive exporter of potash fertilizers produced by Belaruskali and Uralkali.