14 july 2016

On July 14, 2016, Belarusian Potash Company reached an accord with the Consortium of Chinese buyers (Sinochem, CNAMPGC, and CNOOC) to set the contract price of USD 219 per ton to supply potash to China, with the price being effective until December 31, 2016. The contract commitments will be in line with the provisions of the long-terms MoUs the parties signed earlier.

The People’s Republic of China is a major global potash consumer, and the effective system of Chinese supply contracts is instrumental to structuring the global potash market overall. The agreed price of the Chinese contract will undoubtedly give another positive signal to the market supporting its gradual growth.

Commentary by Ms. E.A. Kudryavets, BPC Director General: “The deal with China logically arises from the contract with India being previously entered into, and we are confident that the Chinese deal will contribute to stabilizing the global potash market and secure its upward advance. This price level reflects the actual market situation and the trends prevailing in the global potash market. The deal will enable to balance demand and supply in the market, support business momentum, and create a solid basis for global potash producers and buyers, assisting them in identifying future business strategies.

Belarusian Potash Company believes that the agreement reached is a factor strengthening those positive trends the market saw upon settling the deal in India. BPC expresses words of appreciation to the Consortium of Chinese buyers for the efforts made to take a balanced decision, being mutually acceptable to both parties.