Uralkaliy OAO : Uralkali announces prices for Russian consumers

           Uralkali (LSE: URKA; “the Company”), one of the world’s largest potash producers, has published prices for Q4 2012 for Russian compound fertiliser (NPK) producers and industrial consumers. The price for NPK producers will amount to RUB 8,661 per tonne (without discount). The price for industrial producers will be RUB 10,440 per tonne of 95%KCl and RUB 10,740 per tonne of 98% KCl.

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 Nondiscriminatory 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 RUB 4,760 per tonne.

The prices for Q4 2012 for different KCl consumers in Russia (net of VAT, bulk, RUB per tonne) are as follows:

NPK producers * Industrial consumers Agricultural producers
95% KCL – 8,661 95% KCL – 10,440
98% KCL – 10,740
95% KCL – 4,760

Information about prices for different groups of Russian consumers is available on the Company’s website at http://www.uralkali.com/buyers/prices/.

Uralkali (www.uralkali.com) is one of the world’s largest potash producers with a market share of about 20%. The Company’s assets consist of 5 mines and 7 ore-treatment mills situated in the towns of Berezniki and Solikamsk (Perm Territory, Russia). Uralkali employs ca. 12,500 people (in the main production unit). Uralkali’s shares and GDRs are traded on the RTS-MICEX and LSE, respectively.

 

The original article can be found here