China sees little impact from sanctions on potash exports, says top fertiliser firm

Sinofert Holdings

23/03/2022 14:53

BEIJING, March 23 (Reuters) - Sanctions on exports of potash
fertiliser from Belarus and Russia are not impacting supply in
China, an executive from state-owned fertiliser maker Sinofert
Holdings  0297.HK  said on Wednesday, due to sufficient domestic
stocks.
    Belarus and Russia are among the world's top three producers
of the crop nutrient potash, and China is a major importer.
    Exports from Belarus were sanctioned by Washington last year
after the country's president crushed protests following
elections in 2020.
    Western nations have issued new sanctions on it for
supporting Russia's invasion of Ukraine, while tough economic
sanctions are also in place on Russian exports.
    China produces about 5.5 million tonnes of potash, and also
has some strategic reserves and commercial stocks, Feng Mingwei,
executive director of Sinofert told reporters after its annual
earnings, allowing it to "maintain a relatively normal state".
    China said on Monday it was releasing 1 million tonnes of 
potash reserves ahead of spring planting.  urn:newsml:reuters.com:*:nB9N2VI00M
    Feng added however that the company, a unit of Syngenta
Group and the country's top fertiliser producer, was in
discussions on next steps.
    "We are also using legal means and some experts to conduct
research to decide the next step," he said.
    Washington gave clients of the Belarus Potash Company until
April 1 to wind down their business with the firm.
    Potash prices are near a 10-year high, and the recent
sanctions are fuelling fears of food shortages globally.
 urn:newsml:reuters.com:*:nL2N2VI30O
    Fertiliser sales within China are also being affected by
restrictions on movement in place to contain recent COVID-19
outbreaks, added executive director Ma Yue on the same call.
    Despite obtaining special passes for more than 1,000
vehicles to deliver fertiliser in the northeastern province of
Jilin, between 80,000 and 100,000 tonnes of goods are still
waiting to be shipped, said Ma.
    

 (Reporting by Dominique Patton and Beijing Newsroom; Editing by
Kirsten Donovan)
 ((dominique.patton@thomsonreuters.com;))