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# BPC-China contract irritates Uralkali

Publication Date: 11.05.2020, 12:00

The Russian producer isn't happy with the competitor's decisions.

Uralkali made a statement regarding the Belarusian Potash Company (BPC) contract signed with a consortium of Chinese consumers for the sale of potassium chloride.

According to Uralkali’s statement, BPC reached unreasonable commercial conditions. They do not reflect the real market situation at the moment and in the future. The agreed price is not optimal both for a contract concluded for such a long period and the industry as a whole.

Potassium chloride producers bear high investment expenses to maintain the existing production and develop new deposits. This is necessary to meet the growing global demand for fertilizers. At the same time, the conclusion of contracts at prices similar to those agreed by BPC will lead to a reduction in investment costs of companies and, ultimately, to a shortage of potassium chloride in the market.

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