Belaruskali begins dumping in potash market
10:59, — Economics
Belaruskali has been caught dumping in the potash fertilisers market.
While Uralkali is going to present shareholders and investors its development strategy in the new conditions, Belarusian manufacturers of potash fertilisers Belaruskali has begun to implement the forecast of arrested Uralkali CEO Vladislav Baumgertner.
As Reuters reports referring to industry sources, Belaruskali began to dump prices offering buyers a 20% discount.
The Belarusian company is ready to reduce price by $67 (from $427 to $360 a tonne) for India in the second half of the year. Sources in Indian government bodies say all suppliers agreed to cut prices on existing contracts, but the size of the discount is to be discussed, AFN news agency reports.
In Brazil, one of the largest segments of the potash market, spot prices fell from $450 to $370 a tonne. Belaruskali and Germany's K+S Kali have already sold products at this price, sources say. Brazil, which imports 14% of global consumption (7mn tonnes) expects a further decline in spot prices to $350-$360 a tonne.
Meanwhile, Chinese importers want Canpotex to sell potassium at $320 a tonne after the Indian precedent and Uralkali's supplies to northern China by rail at similar ($320 per tonne) prices.
Buyers from Malasiya and Indonesia are watching the developments in China hoping that prices will drop to $330-$340 a tonne cfr from $400-$420 a tonne before the BPC breakup.
It's worth noting that reducing potash prices for Brazil, India and Malaysia was also caused by a sharp fall of their national currencies.
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