Bloomberg News

Uralkali CEO Says No Potash Price Reduction for India, Vietnam

November 30, 2011

Nov. 29 (Bloomberg) -- OAO Uralkali, Russia’s largest fertilizer maker by market value, has no plans to cut potash prices for India after importers in the Asian country asked for a discount as the rupee slumped against the dollar.

“There won’t be a price revision,” Chief Executive Officer Vladislav Baumgertner said in a telephone interview. “We cannot offer discounts for individual markets while global demand is high and our plants are working at full capacity.”

India’s rupee fell to a record 52.73 per dollar during trading on Nov. 22 on concern Europe’s debt crisis will hurt demand for emerging market assets, prompting fertilizer importers to ask suppliers to lower prices.

Uralkali has no plans to cut potash prices for Vietnam either, Baumgertner said. The company’s trader Belarusian Potash Co. agreed to sell about 275,000 tons of potash to Vietnam next year for about $140 million, Belta reported today.

It’s a “misinterpretation” to assume those numbers indicate a reduced price of $509 a ton, Baumgertner said.

“BPC signed a framework agreement, stating indicative sales volumes only,” Baumgertner said. “The price for Vietnam remains linked to the Southeast Asian spot price, which is now $535 a ton.”

--Editors: Torrey Clark, Alex Devine

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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