Belarusian Potash Company, Belaruskali export 9.5m tonnes of potash fertilizers in 2016

Friday, 10 February 2017 14:10  |  Written by  BelTA

The company's representatives noted that 2016 was not an easy year, especially its first half

Belarusian Potash Company and Belaruskali exported as much as 9.5 million tonnes of potash fertilizers in 2016, BelTA learned from the press service of Belarusian Potash Company as it commented on the 2016 results for the potash industry, pricing policy and strategic markets.

The company's representatives noted that 2016 was not an easy year, especially its first half. There were no contracts with China, the situation on the market was not very good, and the demand was low. “Belaruskali and Belarusian Potash Company reduced their output and export to a greater degree than other suppliers. We acted as responsible suppliers with a balanced view of the market,” the press service noted. That created conditions for the greatest possible stabilization of the market and conclusion of one-year contracts.

“Once the contracts were signed, the situation changed dramatically. The second half of 2016 was a breakthrough period: the demand went up in all regions, which had a positive effect on the prices. As the market and the demand started to recover, Belarus' exports of potash fertilizers began to grow. The production and export graphs for H2 2016 demonstrate that amid the favorable market situation, Belaruskali and Belarusian Potash Company saw a greater increase in the output and exports than other big potash producers. Meanwhile, the prices were also edging up,” the press service noted. Apart from that, the specialists emphasized that Belarusian Potash Company was the only large supplier of potash to boost the volume of its exports in 2016.

All in all, Belarusian Potash Company and Belaruskali exported some 9.5 million tonnes of potash fertilizers, which places the Belarusian manufacturer and exporter among the global leaders.

Belarusian Potash Company has positive projections for 2017. “Spot markets show a certain growth, which has a positive impact on the prices. The backlogs of inventory in China have been reduced considerably. By the way, the negotiations with China will be main event on the market in the near future. As for now, we are fully contracted for Q1 2017. Work is underway to develop plans for future supplies,” the press service said.

As for the price expectations for 2017, the company's representatives noted that Belarusian Potash Company saw a positive trend in the prices for potash fertilizers. “The main impetus, of course, was the one-year contracts with Indian and Chinese importers. The results of their implementation influenced almost all the spot markets, especially such countries as Brazil and the United States. Now the prices on the majority of the markets are stable and maintain an upward trend. We will see what the negotiations with China bring to us, but we think that the new contract will be another step in the development of the market,” the press service said.

Belarusian Potash Company pursues a policy of equal respect and attention to clients from different parts of the world. It sends regular shipments to Southeast Asia, Europe, Africa, Brazil and North and South America. There are also so-called contract markets, such as China and India. Contracts with such countries affect the general situation in the world.

As for the American market, Belarusian Potash Company has not yet gained a firm foothold there. “This market is quite big, and it is traditionally dominated by North American producers. This is explained by the historical ties and the clear logistical advantages. On the American market, we are following a policy of gradual restoration of traditional volumes. In 2016, we supplied some 350,000 tonnes of Belarusian potash fertilizers to American consumers,” the company said.

Belarusian Potash Company and Belaruskali will be guided by the real demand on the market in 2017. They plan to maintain a balanced and responsible approach to the production and sale of potash and place priority on sales efficiency, the press service said.

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