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 Aug. 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 Aug. 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, with delivery volumes allocated according to the market situation. The statement made no reference to pricing, and a BPC source confirmed that the price would be settled annually and at a level not lower than for ordinary granular product. 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 (GM May 18, 2015).