Uralkali may reduce volumes in 2015 China contract
MOSCOW. March 5 (Interfax) - Uralkali does not rule out a reduction in exports to China in 2015 compared with 2014, Sales and Marketing Director Oleg Petrov said during a conference call.
In addition, Petrov could not rule out the possibility that no new contract with China would be signed in the first quarter and that Belaruskali might reach agreement on that market first. "This is impossible to rule out," he said.
Uralkali has not increased deliveries by rail to China since the beginning of the year. However, Belaruskali and other players have been active and Uralkali's share of that market declined, he said.
Uralkali and other producers want to secure at least a 10% increase in the price China pays compared with last year's contracts.
Due to the accident at Uralkali's SKRU-2 mine, the company expects to see its share of the granulated potash market decline in India, China and Southeast Asia.
In January 2014, Uralkali concluded a contract on delivery of 700,000 tonnes of potash to China at $305 per tonne (CFR).
