Summary
China is the largest consumer of potash and has to import most of it from different countries. BPC is negotiating with China to export potsh.
Analysis
Each Year China negotiates with major producers of potash. China consumes roughly 5-7 million tonnes of potash each year. This year they have just started negotiations with BPC in order to finalize the potash imports.
According to analysts, BPC is planning to export about 860,000 tonnes of potash to china in the year 2010. BPC is not the only exporter of potash to china. China also imports potash from Potash corp and some other producers.
Last year we saw a breakthrough when india finalized potash prices with russian miner Silvinit at 460 USD per tonne which was well below the spot price of almost 700 USD per tonne. But we will have to wait and see that how the price negotiations go ahead this year. Major potash exporters will be keeping a close eye at the BPC--China negotiations.
.
