Quickly after announcing that it was pulling out of Belarusian Potash Co., Uralkali announced that its trader Uralkali Trading has reached an agreement with CNAMPGC, a major Chinese fertilizer importer, on delivery of an optional quantity within the framework of 2013 contract.
“We are sure that this agreement will contribute to potash fertilizer consumption by Chinese agricultural producers,” said Oleg Petrov, Uralkali director for sales and marketing. “In China we can see that potash is significantly under-applied compared to the volumes recommended by scientists. We believe that this agreement will provide certainty for the global potash market and the basis for overall growth of sales volumes in H2 2013.”
Uralkali said it expects to ship 500,000 mt under the contract for the period July 29, 2013 through Dec. 31, 2013.
Uralkali did not indicate a specific price though earlier Uralkali indicated that the existing first-half price of $400/mt CFR to China could drop to $300/mt CFR, if not lower.