MINSK, 30 April (BelTA) – Belarusian Potash Company has reached an agreement on the price for selling fertilizers to China, the company's press service told BelTA.
Belarusian Potash Company and a consortium of Chinese buyers (Sinochem, CNAMPGC, and CNOOC) have decided to take a step of vital importance for the global market of fertilizers and sign an agreement on a new price for the Chinese contract. The price for deliveries in 2020 will be $220 per tonne in line with the new contract, the source said.
The new price creates a solid foundation for stabilization, recovery, and consequent progressive development of the world potash market, Belarusian Potash Company believes.
According to the source, the global macroeconomic situation has been hit by a number of crisis factors recently: a historic low of prices for oil and other raw materials, the devaluation of national currencies, and so on. The COVID-19 pandemic has also made a negative contribution to the overall unstable situation. It has affected the fertilizer market and agriculture among other things. The integrity of logistics chains and the regularity of shipments have been affected. Quarantine measures have forced the governments and the population of a larger part of the world to better recognize the value and importance of agriculture for a normal life. Food security is once again the cornerstone. Ensuring uninterrupted production of food and the smooth operation of associated delivery chains should become a number one priority for everyone, Belarusian Potash Company believes.
The Belarusian company thanked the Chinese partners for their constructive approach, for understanding the situation and their willingness to develop the market. In turn, Belarusian Potash Company and Belaruskali are taking all the necessary measures to keep their business processes operating smoothly.
The company said: “Given the global scale of the crisis, we also urge all participants of the logistic chain (stevedores at the discharge and loading ports, shipowners, railways, trucking companies) to maximally support fertilizer movement to the end user, to the farmers. Certainly, the return to the normal life now becomes the mission of every responsible business while agriculture has always been and remains the key industry for the world's population.”
The public joint-stock company (OAO) Belarusian Potash Company was established in 2013. It is the exclusive exporter of potash fertilizers made by OAO Belaruskali. The BPC has maintained leadership on the world market of potash fertilizers for the last few years. Over the course of nearly seven years of its operation the BPC has sold Belarusian potassium to 128 countries.