BPC and IPL have agreed on a new potash price at $280/t (cfr).
OJSC Belarusian Potash Company (BPC) and the largest Indian potash importer, IPL, have set a new contract price for the supply of potash fertilizers to the Indian market at $280/t (cfr) with a deferred payment of 180 days. This is $33/t higher than the price announced in January, as reports the press service of the BPC.
At the same time, the company notes that it was possible to reach this agreement due to a balanced approach to doing business and a common desire for a balanced and reasonable development of the potash market, which is demonstrated by the participants of the agreement.
Many other potash producers considered the previous contract price for India at $247/t (cfr) too low, taking into account the spot prices at that time, as well as the overall market situation in early 2021. As a result, the IPL was unable to negotiate the same price with other suppliers. This may explain the unusual change in the value of contract volumes.
BPC was established in 2013 and implements the exclusive right of foreign trade in potash fertilizers, assigned to the state. The shareholders of the company are OJSC “Belaruskali”, the state association “Belarusian Railway” and the state enterprise “Beleximgarant”. According to the results of 2018, the share of BPC in the world export of potash fertilizers was 20.5%. The geography of BPC exports is almost 130 countries.