http://www.charter97.org/en/news/2013/11/4/79096/
Uralkali executive denies talks with Belaruskali about restoration of sales alliance
4.11.2013 12:57
Uralkali has not held talks with Belaruskali about the possible restoration of their trade alliance.
Oleg Petrov, the Russian potash giant’s chief of sales and marketing, said it in an interview with Bloomberg.
He noted that Uralkali had “tried hard” to prevent the break-up of Belarusian Potash Company (BPC). “It became difficult to sustain it lately, as the whole industry rushed to fight for market share, to the detriment of both customers and shareholders. We are surprised to read comments from some people in the industry who, by their own actions, facilitated this crisis,” he said.
The executive said that Uralkali’s sales had picked up since the break-up of the alliance with Belaruskali this past July. “Markets have recovered and are no longer paralyzed,” he said.
According to Mr. Petrov, Uralkali’s new strategy is working. “We sold about 850,000 tons of potash in September and ended up with about 900,000 tons in October.” About 200,000 tons of October’s sales were to India, with a similar amount to Brazil. Uralkali also sold about 150,000 tons in Russia and had “good volumes” to China by rail and sea, he said.
The Russian company reportedly agreed to sell potash to India in September for $375 a metric ton, 12 percent less than a sales agreement BPC signed in February.
“This doesn’t necessarily mean that we are the only company in the world who is selling now,” said Mr. Petrov.
Brazil purchased about one million tons a month during its peak period of September and October, he said. Winning sales in Brazil is a competition with suppliers from Canada, Israel and Germany, with Belarus the only major producer without market share, he stressed.
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