Uralkali, Moscow, said earlier today it believes that the commercial conditions that were reached by Belarusian Potash Company (BPC) with the Consortium of Chinese Buyers for the new potash supply contract “do not reflect the real market situation that is developing at this time, or its outlook”.
“The price that has been agreed is not appropriate either for the length of that particular contract, or for the industry as a whole,” said Urakali in a statement on its website. “We will need to consider whether we are prepared to conclude contracts at the price set by BPC.”
BPC announced on April 30 it had agreed a new contract price of $220/mt CFR with the Consortium of Chinese Buyers for standard potash deliveries in 2020. The agreed price marks a $70/mt reduction on the previous seaborne contract price of $290/mt CFR struck in September 2018, or almost 25 percent lower. The seaborne contract price that China agrees with the first supplier is then traditionally used in other seaborne contracts between the country and other international suppliers.