BPC’s Q3 potash hits record high of $1,000/tonne

23 April 2008 09:43  [Source: ICIS news]

LONDON (ICIS news)--Major exporter Belarusian Potash Co (BPC) has achieved a record high price for potash in Asia and Latin America spot markets, up about $300/tonne from the last business done, driven by demand, the company said late on Tuesday.

 

In a statement on its website, BPC reported that it had successfully reached the $1,000/tonne (€630/tonne) CFR (cost and freight) price level for third-quarter shipments.

 

The last business reported in Brazil for granular MOP (muriate of potash) was at $750/tonne CFR for May shipment, while BPC last sold standard MOP to southeast Asia at $670/tonne CFR for April shipment.

 

“These price increases are driven by the continuous growth of global demand, historically low inventory levels and unprecedented tightening of the supply for the remainder of 2008 after the agreements reached by the company in China and India,” said Vladislav Baumgertner, president and general director of Russian potash supplier Uralkali.

 

BPC’s new price level in Asian spot markets, mainly southeast Asia, will be $1,000/tonne CFR for standard MOP.  

 

The new price in Brazil will be $1,000–1,010/tonne CFR for granular MOP, depending on the customer size.

 

The new prices have been established for shipments from the 1 July, 2008 onwards.

 

BPC recently agreed 2008-2009 contracts with China and India, settled at a $400/tonne CFR and $355/tonne hike respectively.

 

BPC exports MOP on behalf of Russian potash supplier Uralkali and Belarusian producer Belaruskali.

 

($1 = €0.63)

 

 

By: Carl Roache
+44 20 8652 3214

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