13 July 2009 11:01 [Source: ICIS news]
LONDON (ICIS news )--Russian potash marketer International Potash Company (IPC) has reached an agreement to supply Indian potassium chloride (MOP) buyers at a drop of $165/tonne (€119/tonne) from the previous contract price, an IPC spokesman said on Monday.
The agreement, made at $460/tonne CFR (cost and freight) including 180 days’ credit, between IPC and Indian Potash Ltd (IPL), covers 850,000 tonnes to be delivered from July 2009 to March 2010.
The global potash market has been eagerly awaiting the first settlement in ?xml:namespace>
The lower price reflects the global slump in potash demand and the stark deterioration of the market following last year’s record high price levels.
“If no concession was made the Indians said clearly there would be no contract,” said the IPC spokesman.
“Somebody had to move and take a step forward.”
It was unclear whether other potash suppliers such as Belarusian Potash Company (BPC) and North American marketer Canpotex had followed this price.
The Indian government imports large quantities of MOP through trading agencies including IPL.
IPC markets MOP internationally on behalf of Russian producer Silvinit.
($1 = €0.72)
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