{"id":1182458,"date":"2020-05-05T11:50:33","date_gmt":"2020-05-05T16:50:33","guid":{"rendered":"https:\/\/www.mining.com\/?p=1022788"},"modified":"2020-05-05T11:50:33","modified_gmt":"2020-05-05T16:50:33","slug":"uralkali-slams-potash-deal-between-belarus-and-china","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1182458","title":{"rendered":"Uralkali slams potash deal between Belarus and China"},"content":{"rendered":"<p>Russian potash producer Uralkali <a href=\"https:\/\/www.uralkali.com\/press_center\/press_releases\/item43121\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">said on Tuesday<\/a> that its former distributor, the Belarusian Potash Company (BPC), is selling the fertilizer at such low price that it may make it impossible for the company to conclude contracts<\/p>\n<div class='ad-slot' id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {    googletag.display('div-gpt-ad-1561499308230-0');    googletag.pubads().addEventListener('slotRenderEnded', function (event) {        if (event.isEmpty) {            var id = event.slot.getSlotElementId();            var x = document.getElementById(id);            if (x.parentElement.classList.contains('ad-slot')) {                x.parentElement.style.display = 'none';            }\t\t\t\t        }    });});<\/script><\/div>\n<p>Uralkali also said the $220 per tonne <a href=\"https:\/\/www.mining.com\/belarus-scores-potash-contract-with-chinese-consortium\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">set by BPC and China last week<\/a>, did not reflect the current grim conditions nor the outlook for the fertilizers market.<\/p>\n<p>\u201cPotash producers incur high<br \/>\ninvestment costs in order to maintain existing production capacities and<br \/>\ndevelop new deposits,\u201d the potash producer said. \u201cIf contracts are agreed at<br \/>\nthe price levels agreed by BPC, in the long term this will drive producers to<br \/>\ncut their capital investment and, ultimately, will lead to a shortage of<br \/>\npotassium chloride in the market,\u201d it said.<\/p>\n<p>In October, the company signed a<br \/>\nsupply agreement with India for this year that priced the nutrient at $280&nbsp;per<br \/>\ntonne. Uralkali didn\u2019t have any contracts with India or China during 2019 ,<br \/>\nbecause of&nbsp;low prices and oversupply of stocks. It was the first<br \/>\ntime that happened in at least decade.<\/p>\n<p>The price that major users India<br \/>\nand China agree with a producer is then typically used in contracts with other<br \/>\nsuppliers.&nbsp;<\/p>\n<p>It wasn\u2019t the case in last week\u2019s<br \/>\ndeal signed between BPC, the exclusive exporter of potash produced by Belaruskali<br \/>\nand a consortium of Chinese companies. Those buyers included state-owned<br \/>\nSinochem\u2019s fertilizer arm, Sinofert, China National Agricultural Means of<br \/>\nProduction Group and state-owned CNOOC.<\/p>\n<p>Potash stockpiles are at a record<br \/>\nhigh and exporters will likely want to clear them as soon as possible, CRU<br \/>\nsenior potash analyst, Humphrey Knight, told MINING.COM.<\/p>\n<p>It means it will be months before<br \/>\nChina requires significant fresh supply and, as a result, spot prices will<br \/>\nrespond accordingly in late 2020, the expert noted.&nbsp;&nbsp;<\/p>\n<p>Beijing has imported 3.2 million tonnes of potassium chloride (MOP) from Russia since October 2018 and 2.4 million tonnes from Belarus in the same period, according to <a href=\"https:\/\/www.globaltradetracker.com\/start\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">data from the Global Trade Tracker (GTT)<\/a>.<\/p>\n<p>Total global sales to China in the<br \/>\nperiod hit 13.2 million tonnes, with Canada leading the list with 5.2 million tonnes.<\/p>\n<p>Russia\u2019s export to China in the<br \/>\nfirst quarter&nbsp;this year were at about 690,000 tonnes, compared to about<br \/>\n290,000 tonnes of fertilizer the Asian giant bought from Belarus, and 1million<br \/>\ntonnes from Canada.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Russian producer said it might not be prepared to conclude contracts at the $220 per tonne price agreed between BCP and China.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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