"Reuters" reports that India will buy one million tons of potash from Russia's Uralkali (LSE: URKA) at $322 per ton, the lowest price in seven years, and 25% below last year's price of $427 per ton.
Potash prices have fell by over 20% since Uralkali parted ways from Belarusian Potash Company (BPC) in July 2013, breaking the Russian potash cartel.
"We have agreed on the price (for next fiscal year). Now we are negotiating volume," one of the Indian buyers told "Reuters".
Uralkali declined to comment to "Reuters" on any deal to sell potash to India.
"Reuters" adds, "Uralkali's contract price is likely to emerge as the benchmark for other suppliers to India, such as the powerful North American trading group Canpotex Ltd., owned by Potash Corporation of Saskatchewan Inc. (NYSE; TSX: POT) , Mosaic Co. (NYSE: MOS) and Agrium Inc. (NYSE; TSX: AGU). Other potash producers which supply India include Germany's K+S AG (XETRA: KDF), Jordan's Arab Potash Co., and Israel Chemicals Ltd. (TASE: ICL)."
Published by Globes [online], Israel business news - www.globes-online.com - on April 1, 2014
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