Recently, China's Potash fertilizer (PF) importers have signed the Import Potassium Chloride Contract 2011 with BPC. The capacity of import PF will reach 1 million tonnes in 2011, with the change of price mechanism turning to once a year instead of once every six months. The contract price is USD 400.00/t in 2011, which increases by USD50.00/t compare with 2010. The price of the second half year of 2011 will be reconsidered. By customary rule, PF suppliers such as Canpotex, will sign the import contract with China's importers according to the BPC contract price. The import price of potassium chloride in 2011 has been basically confirmed.
The import contract price is basically in accordance with expectation. The contract price in China is lower than other countries, which is influenced by the decrease of monopolistic pricing mechanism and ocean freight for potash fertilizer at home and aboard. But the amount of signed contracts is less than expected, and the contract in the first part of 2011 may cause the rise in the second half year contract price. The International Fertilizer Association (IFA) forecasts the increase rate of global PF demand being 18.9% and 7.9% in 2010 and 2011 respectively. However, the actual effective supply of global PF only increases by 1.9% and 2.1% in 2010 and 2011 respectively. PF will be in short supply in 2011, which may cause the price rise of it in 2011.
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