BPC nears $1,000/tonne record for Q3 potash

24 April 2008 11:10  [Source: ICIS news]

LONDON (ICIS news)--Major exporter Belarusian Potash Co (BPC) is close to achieving a record high price for potash in Asian and Latin American spot markets but no sales at $1,000/tonne have yet been finalised, the company said on Thursday.

 

Earlier this week, Russian potash supplier Uralkali said its marketer BPC had “established” $1,000/tonne (€630/tonne) CFR (cost and freight) for standard muriate of potash (MOP) to Asia and $1,000-1,010/tonne CFR for granular MOP to Brazil for third-quarter shipments, on the back of high global demand and tight supply.

 

However, BPC has clarified the position and confirmed this price was a target for third-quarter sales and yet to be fully recognised, adding the record levels was likely to be hit next week.

 

“We are close to settling this,” said the company source.

 

BPC said it was almost fully committed for the second quarter, which meant third-quarter sales were imminent.

 

In the current market situation, buyers have little opportunity to resist the price increases of producers. As a result, global MOP prices have risen consistently in all regions.

 

Illustrating this, Chinese and Indian buyers recently settled contracts at a $400/tonne and $355/tonne hike respectively compared with last year.

 

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

 

($1 = €0.63)

 

By: Carl Roache
+44 20 8652 3214

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