June 22, 2012
Uralkali discloses fertiliser prices for Russian consumers
Prices for Russian compound fertiliser (NPK) producers and industrial consumers for the third quarter of 2012 have been published by Uralkali at RUB8,662 (US$261) per tonne (without discount).
The price for industrial producers will be RUB9,468 (US$285) per tonne of 95% KCl and RUB9,768 (US$294) per tonne of 98% KCl. The decrease in the price for NPK producers and industrial customers is mostly driven by the decreasing dollar exchange rate.
The price formula is provided by Uralkali's Marketing Policy which has been approved by the Russian Federal Antimonopoly Service (FAS). In line with Uralkali's Marketing Policy and "Rules for Non-discriminatory Access to Purchasing Potash" issued by the Russian Antimonopoly Service in November 2010, the Company sets the price for Russian NPK producers and industrial consumers according to the average weighted export price in the lowest-priced market, excluding transport costs (minimum export price).
Moreover, to support potash fertilisers supplies to the domestic market, the Company's Marketing Policy provides premiums to NPK producers on the potash volumes intended for the production of compound fertilisers for the domestic market so that they purchase these volumes from Uralkali on the same favourable terms as agricultural producers.
As Uralkali has previously announced, the ceiling price for direct sales to Russian agricultural producers in 2012 is RUB4,760 (US$143) per tonne.