BPC announces further contract of 400,000 tonnes of MoP at $490/tonne CFR

NEW DELHI: Close to a week after India jettisioned its self declared two year potash import holiday and struck big supply deals with it and with Canpotex, Belarusian Potash Company or BPC, marketing arm of Uralkali (Russia) and Belaruskali (Belarus), has announced a further contract of 400,000 tonnnes of MoP at US $490/tonne CFR for a 180 day period.

The MoP ( muriate of potash) supply deal, struck with Zuari Industries Ltd is to be shipped to Indian shores between September 2011 and March 2012. Zuari is BPC's traditional partner and second largest MoP buyer in India.

The contract, officials said, encapsulates supplies to all of the Zuari group companies. $490/tonne became the benchmark price despite the $590/tonne later this year that experts said N American suppliers Canpotex could expect despite India not signing fresh supply deals since April.

The new benchmark price was discovered after IPL, Tata and Coromandel struck separate supply deals, breaking the import holiday. IPL struck a $490/tonne supply deal while the other two struck a split pricing deal in two phases of $470/tonne and $530/tonne.