http://indrus.in/economics/2014/02/28/...ain_its_customers_33389.htmlCan Uralkali retain its customers?
February 28, 2014 Kommersant, RIR
The Russian potash producer’s former Belarusian partner has signed a supply agreement with PhosAgro at a heavily discounted rate. This is likely to have an impact on global prices
Belarusian potash producer Belaruskali, which has been in conflict with Russia's Uralkali since last summer, could deal its competitor a serious setback. The Belarusians will begin to supply potash to the largest Russian consumer, PhosAgro, who used to work with Uralkali. The Belarusians offered a price almost 25 percent below market price. Belaruskali might be able steal other customers from Uralkali as well.
Until mid-2013, Uralkali and Belaruskali collaborated on the potash market, and accounted for more than 40 percent of global sales.
PhosAgro head Andrei Gurev noted that after the Belaruskali and Uralkali consortium collapsed, Russian producers of compound fertilizers and agricultural products had the opportunity to buy raw materials from an alternative supplier and “chose the optimum supply conditions.” PhosAgro, the largest consumer of potash in Russia, buys about 770,000 tons per year.
At Uralkali they reacted calmly to PhosAgro's decision to change suppliers, stating that their contract with the consumer was still in force. “We will make plans based on the new situation. If PhosAgro will not require a certain volume, we will sell it to someone else,” Uralkali said. The average price of potash in Russia for the first nine months of 2013 was $192 per tonne, and the export price was $272.