BELARUS NEWS AND ANALYSIS
DATE:
01/02/2008
Uralkali's Belarus potash jv to raise China prices by at least 100 usd/tonne
MINSK (Thomson Financial) - JSC Uralkali's Belarusian Potassium Co (BPC) joint venture wants to raise fertiliser prices for China's buyers by at least 100 usd per tonne this year, BPC deputy general director Oleg Petrov said, Interfax reported. 'We want to get a substantial increase in price on shipments to China - at least 100 usd per tonne,' Petrov said at a press conference. He added that negotiations were still ongoing. 'The longer negotiations will be dragged out, the higher the chance that China will see a drop in the volume of supplies and a price increase,' the executive said. Analysts told the Russian news agency they believe Chinese buyers paid 200 usd per tonne for BPC's potash fertiliser last year, indicating that this year's price will rise by more than 50 pct. Record global grain prices are pushing up demand for potash, and Petrov forecast that there will be a shortfall of about 1 mln tonnes on world markets this year. Increased production will allow supply and demand to come close to equilibrium in 2010, though Petrov said he expected smaller shortages to persist up to 2012. The world potash market currently totals 55 mln tonnes, with demand increasing by 2 mln tonnes per year. BPC is a 50/50 joint venture between Uralkali and Belaruskali. According to Uralkali's website, BPC is the world's largest potash fertiliser trading company, with a 34 pct market share.
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