14 June 2011 11:08 [Source: ICIS news]
LONDON (ICIS) – The Indian government is expected to increase its potash import parity price within the next week, a major potash marketer said late on Monday.
“We’ve had an indication from them [Indian government officials] that an increase is coming,” the marketer said, adding that the price will probably be around $450/tonne cost & freight (CFR) (€310/tonne CFR), or just under.
The current import parity price was increased to $420/tonne CFR in April from $390/tonne CFR, yet there still remains a large discrepancy between Indian buying ideas and the price targeted by major producers, which is closer to the $500/tonne CFR mark plus credit.
A spokesman for Indian Potash Ltd (IPL), the government-run largest potash importer in the country, was adamant the subsidy will remain at $420/tonne CFR, however, and insisted that if that price cannot be achieved, then muriate of potash (MOP) will not be imported.
“There has not been any… tangible progress,” the spokesman said. “Yesterday we were talking to [suppliers], but we are still some way apart [in price ideas].”
But other market sources believe the Indian government will soon raise the subsidy level to around $450/tonne CFR. Major buyer Indian Farmers Fertiliser Cooperative (IFFCO) had viewed this figure favourably last month, but the government has been slower to warm to the higher price. However, Indian traders say political tensions are rising and the country will have to meet internal demand for potash quickly in order to secure shipments for July, when potash inventories will be too low to meet summer agricultural demand.
But the bullish nature of the potash market is worrying Indian buyers. One importer says his country must compromise on the issue this year because if it foregoes imports now, the MOP amounts
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections