Germany's K+S sells potash to India at decade-low price-sources

Chambal Fertilisers and Chemicals

18/07/2016 10:54

MUMBAI, July 18 (Reuters) - German potash miner K+S 
 SDFGn.DE  will ship potash to India at the same decade-low 
price that other sellers to the country have agreed to, three 
industry sources said on Monday, at a time when global supply of 
the crop nutrient is exceeding demand. 
    K+S's decision could pressure other key producers such as 
Russia's Uralkali  URKA.MM  and North American trading group 
Canpotex Ltd, owned by Potash Corp of Saskatchewan  POT.TO  
 POT.N , Mosaic Co  MOS.N  and Agrium Inc  AGU.TO , to consider 
offering potash at similar prices. 
    Indian Potash Ltd (IPL), one of the country's biggest 
fertiliser importers, will buy 125,000 tonnes of potash at $227 
per tonne on a cost and freight (CFR) basis with a credit period 
of 180 days, said the officials, who declined to be named as the 
contract has not been officially announced. 
    The price is a third lower than last year. Belarusian Potash 
Company (BPC) and Israel Chemicals (ICL)  ICL.TA  have agreed to 
supply potash at the same rate to India, one of the world's top 
buyers of the material.  urn:newsml:reuters.com:*:nL8N19J2SY  urn:newsml:reuters.com:*:nL4N19X2ZZ 
    Uralkali, the world's biggest potash producer, has said the 
price agreed by BPC was too low and it was not yet ready to sign 
a potash supply contract with India.  urn:newsml:reuters.com:*:nL4N19K2S6 
    But Indian officials said they could not accept a price 
above $227 a tonne since the country has already bought around 
1.5 million tonnes at the price. Prices were as high as $490 
three years ago. 
    "There is no question of raising prices. If other suppliers 
don't agree, then we can buy more from Belarus, ICL and K+S," 
said a senior official with a state-run Indian fertiliser 
company. 
    IPL declined to comment on any potash contract, while K+S 
was not immediately available for the comment. 
    Last week, BPC signed an overdue deal with a consortium of 
Chinese firms to sell potash at $219 per tonne for 2016, a 30 
percent drop from last year.  urn:newsml:reuters.com:*:nL8N1A040E 
    Due to weak global demand, fertilizer miner Mosaic Co 
 MOS.N  has idled production at its Colonsay, Saskatchewan 
potash mine in western Canada for the rest of 2016.  urn:newsml:reuters.com:*:nL1N19Z0XE 
 
 (Reporting by Rajendra Jadhav; Additional reporting by Patricia 
Weiss in FRANKFURT; Editing by Christian Schmollinger) 
 ((rajendra.jadhav@thomsonreuters.com; +91-22-6180-7153 ; 
Reuters Messaging: 
rajendra.jadhav.thomsonreuters.com@reuters.net)) 
 
Keywords: K+S POTASH/INDIA