Chinese and Indian buyers push for price reductions in potash contracts

Chinese and Indian buyers of the crop fertilizer potash are seeking a cut of US$10 to US$20 per tonne in their next contracts with global suppliers, the chief executive of ICL Israel Chemicals Ltd. said on Thursday. Potash prices have fallen in the past year due in part to excessive mining capacity, dry weather in India that limited crop production and a new tax in China. Con- tracts with China and India set a floor for sales to Brazil and the United States, which are on a spot basis. Suppliers are likely to push back on requests for bargains. ICL is the world’s sixth-largest potash producer. Chinese buyers including Sinofert Holdings Ltd. and In- dian importers most recently agreed to pay US$315 and US$332 per tonne, respectively, ICL CEO Stefan Borgas said. Along with ICL, suppliers to China and India include North America’s Canpotex Ltd., which represents Potash Corporation of Saskatchewan, Mosaic Co. and Agrium Inc., Uralkaliy PAO, Belaruskali, K+S AG and Arab Potash Company.