OREANDA-NEWS. December 29, 2008. To execute the Instruction of the Government of the Russian Federation, the Federal Antimonopoly Service (FAS Russia) recommends to base supplies of the apatite concentrate, produced by "Apatit" OJSC and "Kovdorsky Mining-and-Processing Integrated Works" in 2009, on the price 3050 Rubles per ton, reported the press-centre of FAS Russia.

FAS Russia has sent letters with relevant information to the consumers of the raw materials used for production of fertilizers and the producers of such raw materials.

Currently the following independent consumers have contracts for supplying apatite concentrate produced by "Apatit" OJSC: "Minudobrenia" OJSC (Rossosh), "Dorogobuzh" OJSC, "Akron" OJSC.

In the FAS Russia's opinion, the present economic situation on the global markets of fertilizers and raw materials used for their production and on the relevant markets in the Russian Federation does not allow long-term forecast of the main indicators, including prices and volume of sales.

Also, it is impossible to account for the parameters of the adjacent agricultural markets in order to ensure reasonable industry cost-effectiveness along the whole chain from production of the raw materials and fertilizers to the output of ready-to-consume agricultural products, which further complicates elaborating the price formulae for the raw materials used for production of fertilizers.

It is not feasible to introduce a long-term price-regulating mechanism when the main parameters determining the price formulae are undetermined.

FAS Russia expects the weighted average price for apatite concentrate, supplied to Russian consumers in 2008, to be around 3300 Rubles per ton.

Taking into account the corridor between the price, that can satisfy the consumers, and the current weighted average price, which ensures acceptable cost-effectiveness to the producers of raw materials in 2008, FAS Russia recommends that in 2009 supplies of apatite concentrate produced by "Apatit" OJSC and "Kovdorsky Mining-and-Processing Integrated Works" should be based on the price 3050 Rubles per ton.