PhosAgro negotiating with India, not planning big deliveries due to low prices
MOSCOW. May 28 (Interfax) - PhosAgro is negotiating the delivery of phosphorous-based fertilizers to India, but is not planning to ship the country significant amounts due to low prices, PhosAgro General Director Maxim Volkov said during a conference call.
"I suggest that PhosChem is delivering at unnecessarily low prices. We are now continuing with Indian consumers negotiations over volumes, but for our part there will be no substantial deliveries. We are fully able to ship to other markets where they are ready to buy at higher prices right now," Volkov said.
PhosChem, the trader for the major U.S. fertilizer-makers Mosaic and Potash Corporation, announced in mid-May the conclusion of a contract for diammonium phosphate (DAP) with two large Indian consumers. The contract for 400,000 tonnes is valid until this September. The company did not specify a price tag, saying only that it is in line with "current market conditions."
Volkov said in mid-April that the company was not actively negotiating with India over the delivery phosphorous fertilizer due to the country's pricing policy. He said that other fertilizer producers had discussed a price of $520-$530 per tonne with Indian consumers.
