Indian Market To Decide Global Potash Prices.

 Moscow: Uralkali, one of the world’s largest potash producers, on Monday said that it would decide benchmark prices of international potash on the basis of the Indian market instead of China.

“India consumes a lot of potash and it does not have domestic production and this makes sense for us to have Indian market as benchmark for potash prices,” Uralkali CEO Vladislav Baumgertner said.

Traditionally, China has established the ‘floor price’ for export contracts, he said.

“But now, the importance of the Chinese market for potash producers in general has been diminishing. So it does not make sense for us to have China’s benchmark, with relatively small amount of potash imported via sea route,” he noted.

Normally, contracted deliveries of potash fertiliser via the sea route are viewed as the benchmark for rest of the world.

India, which is dependent entirely on imports to meet the current demand, has contracted around 5 mt of potash at $490/tonne and $530/tonne rates, while China has contracted supplies of the fertiliser at $470/tonne. Baumgertner said demand for potash in India is seen growing above the global growth rate of 3-3.5% a year.

Source : financialexpress.com