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BPC contracts to deliver potash fertilizers to China

20 March 2012

MINSK (BelTA) – ZAO Belarusian Potash Company has signed a contract with major Chinese importers of mineral fertilizers Sinochem and CNAMPGC for the delivery of potassium chloride in Q2 2012, BelTA learned from Filipp Gritskov, Head of BPC’s Public Relations Service.

The price is $470 per metric ton on CFR terms. BPC will ship 400,000 tonnes, with 100,000 tonnes as an option. The contract will be in effect on 1 April – 30 June 2012.

The previous six-month contract between BPC and Sinochem and CNAMPGC expired in late 2011. The contract price was $470 per metric ton. BPC contracted to deliver 700,000 tonnes, with 200,000 tonnes as an option.

China uses 9-10 million tonnes of potassium chloride per annum and imports 5-6 million tonnes. Russian and Belarusian potassium chloride accounts for about 50% of the total.

BPC Director General Valery Ivanov said the contract has been signed in a period favorable for the global potash market. Macroeconomic risks are declining, finished goods inventory of potash is being reduced, and prices on the agricultural products market are rising. The purchasing power on key markets is gradually rising. The contract will allow increasing the workload of BPC’s main shareholders – OAO Uralkali and OAO Belaruskali.

ZAO Belarusian Potash Company is an exclusive exporter of potash fertilizers made by OAO Belaruskali (Soligorsk, Belarus) and OAO Uralkali (Russia) and the world’s leading exporter of these products. BPC was set up in 2005. BPC exports potash fertilizers to Europe, India, China, Central and South Americas, the USA, Asia and the Pacific region, Africa and Middle East. The share of Belarusian Potash Company in the global export of potash fertilizers is 43%.