BPC signs 2008 potash supply contracts

12 November 2007 10:46  [Source: ICIS news]

MOSCOW (ICIS news)--Belarusian Potash Company (BPC) has signed potash supply contracts for next year after problems with a rail link were resolved, major producer Uralkali said on Monday.

BPC also said it would raise its standard MOP (muriate of potash) spot offers for Asia from $360/tonne to $400/tonne and granular MOP spot offers for Brazil from $345-355/tonne to $400-410/tonne from 1 January due to supply concerns.

 

Russian producer Silvinit said last month that it could halt its potash shipments in the second half of November due to the possible shutdown of a railway line in the country’s Perm region caused by a sinkhole following flooding.

 

After Silvinit's announcement, BPC moved to halt negotiations on new potash supply contracts.

 

However, the construction of a 1.8 km section of a new 6 km rail line to bypass the affected area has been accelerated and is due to be completed by 1 January.

 

BPC signed a joint-venture deal with Uralkali in 2005 and exports potash to countries in Asia and South America on behalf of it and Belaruskaliy. Silvinit is not part of the agreement but supplies 40% of the Russia potash market.

By: Sergei Blagov
+44 20 8652 3214

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