Rus News Journal

Uralkaly was in time to China about new year

Yesterday the Belarus potash company and Uralkaly declared achievement of the arrangement with the Chinese companies - importers about the price for deliveries of chloride potassium in 2007. Branch experts believe that successful end of negotiations with Chineses will give Uralkaliju chance to return leadership on release of potash fertilizers in Russia. In 2006 in many respects from - for problems with China Uralkaly has conceded the first position to the basic competitor - Silvinitu .
Yesterday the Belarus potash company (BKK) - the exclusive supplier of potash fertilizers RUP ON ` Belaruskaly ` and Open Society Uralkaly on the foreign markets - declared achievement of the arrangement with the Chinese companies - importers Sinochem and CNAMPGC about the price for deliveries of chloride potassium in 2007. As they say in the message Uralkalija From the beginning of February, 2007 the company has raised on $10 of the price for importers in Indonesia and Malaysia, and since March, 1st plans to declare similar increase for the markets of other countries of the Asian region. And within a year BKK intend to achieve rise in prices for chloride potassium for the majority of the world markets: in particular, since February, 1st for partners BKK in Brazil the prices have been increased by $25, and on April, 1st this rise in prices will repeat.

according to specialised British news agency Fertilizerweek. com, negotiations between Chineses and BKK have begun in December, and solving stage have entered in the end of January. The Chinese party insisted on preservation of the last year`s prices for chloride potassium, and BKK suggested to raise them on $12. As a result of the party have converged on growth in $5. In Uralkalii Yesterday have explained that are satisfied by results of negotiations, and also that they have come to the end prior to the beginning of the Chinese New Year`s holidays - otherwise negotiations could be tightened. Last year and has occurred. Negotiations proceeded till July. BKK then it was possible to rise the price for $25, thus that the company insisted on growth on $40, and Chineses tried to reduce the price for $20. As a result Uralkaliju it was necessary to lower manufacture on 15 % (so much production of industrial complex, by data, was necessary to India and China with which contracts have not been concluded). Following the results of a half-year Uralkaly for the first time has ceased to be the leader on release of potash fertilizers in Russia, having conceded the first place Silvinitu . Failure on 1 - m mine " has in addition worsened annual results; Uralkalija . In 2006 the company has let out only 4,2 million tons of chloride potassium - on 22 % less, than in 2005. Silvinit Has for the first time in history let out more than 5,2 million tons of production.

analysts notice that the agreement with China gives Uralkaliju chances to return to the lost leadership. it will allow to increase an export gain: in 2005 on the Chinese contracts the company has earned $104 million - analyst IK " reminds; finam Michael Frolov. An analyst Ak Bars Finans Alexander Blohin notices that, proceeding from a raw-material base, Uralkaly should let out more production, than Silvinit . Now all wait for closing of Canadian mine Mosaic, therefore Chineses have decided to be reinsured and somewhat quicker to conclude the contract. At ` Uralkalija ` is the program on development of new capacities which in the circumstances should be carried out the accelerated rates, increasing manufacture - mister Blohin considers. But Silvinit All the same expects to keep unexpectedly grasped positions in the market. from - for agreements ` Uralkalija ` our volumes will not fall. The basic volumes of our production go by rail to Northern China, and price war is developed in Southern China - have explained in Silvinite . Besides, in the company hint that Uralkaly cannot operatively make good the loss from mine flooding, underlining that someone should compensate it . Really, itself Uralkaly plans to let out this year only about 5 million tons though before mine closing expected to make 6,2 million tons.