Belarus sends up prices for potassium

Belarusian potassium company (BPC) which controls one third of the world potassium fertilizers market, has renewed potassium export, but has sent up prices for Brazil and Asian countries, a report of Russian company Uralkaliy, which controls BPC together with Belaruskaliy, informs.

Since 2007 the BPC has increased prices for its major customers two times. First the price crossed the psychologically important border of USD 300 in the middle of summer. Prices for Belarusian potassium fertilizers influence conditions of delivery for spot market. Spot prices for Asian markets are growing by USD 40 from the moment of announcement (which makes USD 400 per ton), and by USD 55 per ton for Brazil since January 1, 2008, which makes USD 400-410 depending on the volume, the BelaPAN informs.

BPC has informed Uralkaliy that price hike is connected with a considerable demand at major markets while supply is problematic. In 2007 BPC informed that increase of prices for its products is possible, linking it with increased production of biofuel and growing agricultural lands in the number of regions of the world.

In October second largest world producer of potassium fertilizers, Silvinit, which was expected to join BPC as well, stated that it could stop deliveries in November because the only railway branch connecting the enterprise with Transsib has given under.

BPC was established by Uralkaliy and Belaruskaliy on a parity basis in April 2005. Belarusian president Alyaksandr Lukashenka insisted an exporter to be created in order to sell fertilizers without middlemen. It was also planned that BPC would gain control over the world market of potassium fertilizers.