On June 6th 2023 Canpotex announced it has agreed with a Buying Consortium to supply potash to China at a contract price of US$307/mt CFR, which would be a $283/mt lower than the 2022 contract headline and about $115/t lower than the level settled with Indian buyers in April 2023.
This price is significantly below our expectations and does not reflect market fundamentals in key supply regions. Such a cut-price is devastating for the market equilibrium and gives a misleading signal to the global potash market. Hence BPC does not support it.
Meanwhile, we remain committed to the competitive supply of all our valued customers throughout the world, and we will independently do so at levels appropriate to the market conditions that we see and on commercial terms that are acceptable to us.