Uralkali Agrees on Potash Shipments of 850,000 Tons to China
PAO Uralkali, the largest potash producer by output last year, agreed to supply 850,000 metric tons to China in 2015 after competitors Belarus and Canpotex Ltd. earlier signed deals with the world’s biggest consumer.
The figure excludes optional volumes that Uralkali didn’t disclose. The China price of $315 a ton, a benchmark for the world market, is the same as the companies’ rivals got. Last year, Uralkali agreed only to ship 700,000 tons in the first half.
Higher inventories and weak market prices in China meant buyers could stretch negotiations well into March instead of agreeing by the start of the year as usual. That raised concern prices would fall or China would buy from the spot market.
Belarusian Potash Co. was first to agree March 19, setting the price for disappointed competitors without disclosing its volumes. Suppliers could have gotten a more profitable price if BPC, as the international trader for Belaruskali is known, had waited for another two to three weeks, Oleg Petrov, Uralkali’s head of sales and marketing, said by e-mail at the time.
Canpotex Ltd. finalized supply of 1.8 million tons at the end of March, up from the 1.6 million tons it shipped in 2014.