Russia's PhosAgro to stop supplying India, focus on other regions

15 July 2013 17:03  [Source: ICIS news]

LONDON (ICIS)--PhosAgro does not currently plan to renew its long-term supply contract with India due to buyers' low price ideas and will instead concentrate on other markets, a senior executive of the Russian fertilizer producer confirmed on Monday.

Deputy CEO Andrey Guryev said the current Indian spot price for diammonium phosphate (DAP) and monoammonium phosphate (MAP) of $485/tonne (€373/tonne) CFR (cost and freight) is $30/tonne below previous contracts and the company could make more money elsewhere.

Phosagro is believed to have supplied around 400,000 tonnes of DAP to India in 2012 and earlier this year, rival producer Phoschem inked a deal for a similar volume of DAP with Indian buyers without revealing the price.

According to Guryev, the company plans to focus instead on more profitable markets such as southeast Asia, Africa and Europe, including the domestic market, which he said are less prone to currency volatility.

However, Guryev did not completely dismiss the possibility of dealing with India again in future, providing the price and terms are right.

"PhosAgro would be prepared to sign a supply contract with India in the future if both sides can agree on a price and guarantees," he added.

($1 = €0.77)

By: Sylvia Traganida

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