Uralkali not planning contract with China for H2, to resume potash supplies in 2014
PERM. May 24 (Interfax) - Uralkali is not planning to sign a contract with China for potash supplies in the second half of this year, and will probably only resume shipments in 2014, the Russian company's CEO, Vladislav Baumgertner told Interfax.
He said a new contract with China will probably be signed in November-December for 2014.
"Because the situation today is such, because China has large inventories, prices in China are fairly low right now. There was fairly weak demand in China in the spring due to weather factors, so we are forecasting that November will probably be the month when a contract will be concluded," Baumgertner said.
He did not specify the period for which the contract would be locked in or the possible volume of shipments.
Uralkali earlier expected to lock in a contract with China for the second half of this year by June-July.
Belarusian Potash Company (BPC), the trader for Uralkali and Belaruskali on export markets, signed contracts in January with China's largest importers of mineral fertilizer, Sinochem and CNAMPGC, to supply potash in the first half of 2013 at a price of $400 per tonne (CFR). The price was down by $70 from the previous contract. The contracts totaled 700,000 tonnes, with an option for another 300,000 tonnes.
