BPC concludes MOP supply contract with Chinese buyers
14:54 PM | February 19, 2021 | Daniel Marshall
BPC announced on 10 February that it has reached an agreement with the Consortium of Chinese Buyers (Sinochem, CNAMPGC, CNOOC) on a new MOP supply contract price of $247 cfr, the same as recently agreed between BPC and IPL for MOP supply to India. The price is valid for 2021 with the supplying period to China covered through to 31 December 2021. The price represents a $27/t increase on the previous contract price of $220 cfr.
In a press release, BPC commented: “This agreement is the next important step in strengthening the stability of the global potash market and a positive signal for further price increases. The achievement of a new Chinese contract price that follows the Indian creates a solid foundation for sustainable potash demand and an incentive for positive price dynamics. BPC extends its gratitude to the Consortium of Chinese Buyers for fruitful cooperation.”
Following the announcement from BPC, Canadian producer Canpotex issued the following statement:
“Belarusian Potash Company yesterday announced it has agreed with a Buying Consortium to supply potash to China at a contract price of US$247/MT CFR, which would be a US$27/MT increase from previously-reported China contracts. As stated in our release when BPC announced it had concluded a contract for India, this price is significantly below current market levels for potash in key offshore markets. Canpotex is fully committed for potash sales through April 2021, even without new contract settlements with our customers in China and India. We remain committed to the competitive supply of all of our valued customers throughout the world, and we will independently do so at levels appropriate to the market fundamentals that we see and on commercial terms and conditions that are acceptable to us. Record potash shipments were made in 2020, and we anticipate further export market demand growth in 2021.”