Belarussian Potash Co says fertiliser market recovering
MINSK, March 5 (Reuters) - Belarussian Potash Co (BPC), a joint venture between potash producers Uralkali and Belaruskali, expects the fertiliser market to recover this year, allowing it to lift some premium prices that have fallen in the last few months.
BPC, whose prices help set a benchmark for the crop nutrient's market, raised its spot price for Brazilian buyers by $15 to $465 per tonne last month after cutting the price in January for Chinese importers to $400 from $470 and signing a deal with Indian buyers at $427/tonne in early February.
"The potash fertiliser market is indeed recovering. The market conditions allowed us to revise prices for Brazilian importers," BPC Chief Executive Valery Ivanov said in an emailed reply to questions from Reuters.
"We do not rule out that we will have a chance to review our prices in other regions as well."
Potash contracts with big importers like China and India typically set a floor for global prices, with spot buyers like Brazil paying a premium.
BPC's Indian and Chinese deals covered supplies of 1 million tonnes each and Ivanov said he expected to sign additional sales contracts with other companies from those countries.
"Of course, we expect prices to rise in future contracts," he said.
Industry insiders and analysts have said BPC and main rival Canpotex Ltd, both of which have been forced to accept lower prices in long-term contracts this year, face supply challenges from new mines planned by BHP Billiton Ltd, K+S AG and a raft of junior players, as well as pressures from buyers smelling an opportunity to seek deals on more favourable terms.
The two control some 70 percent of world potash exports. Continued...