15:42 PM | February 5, 2021 | Daniel Marshall
BPC issued a press release on 29 January announcing it has concluded negotiations and signed a new annual import contract with IPL to supply 800,000 t MOP to the Indian market at a price of $247 cfr with 180 days’ credit. The price represents a $17/t increase on the previous contract price of $230 cfr.
Following the announcement from BPC regarding its deal with IPL, several producers issued statements announcing their belief that the supply agreement is “significantly below current market levels for potash”. Uralkali was the first to issue a statement, followed by Canpotex, Nutrien and K+S. K+S announced in its statement that it will “will refrain from deliveries to India given the stated conditions until further notice”. There have been no statements issued by the likes of APC or ICL, so it remains to be seen if there will be any other producers happy to agree with Indian buyers at the level set by BPC.