Belarusian Potash Co (BPC) and China’s Sinochem Group have signed a five-year exclusive memorandum on the supply of granular potash fertilizers.
The deal was inked on August 12 for the supply of a new type of potash fertilizer, granular white muriate of potash with the addition of zinc and sulfur, BPC said in an August 13 statement. According to the terms of the memorandum, the product will be supplied to the Chinese market for a five-year period starting from 2019 through to 2023, with “the right to sign annual contracts based on the current market situation,” said the Belarusian supplier.
According to the terms of the memorandum, the total supply volume for the five years will be 700,000 mt. The statement made no reference to pricing. But global suppliers have yet to settle the new annual seaborne potash supply contract price with China’s Buying Consortium, of which Sinochem Corp. is a member.
BPC said the memorandum follows and develops the mainstream line of cooperation between the companies, contained in the existing memorandum on other types of Belarusian potash, signed on May 10, 2015.