Uralkali CEO: Reunion of Belaruskali and Uralkali Is Not on Agenda
OREANDA-NEWS. The world's largest potash producer Uralkali is not conducting negotiations about reinvigorating trade partnership with Belarus' Belaruskali, however the Russian manufacturer is open to any lucrative proposals, Uralkali CEO Dmitri Osipov said in a statement.
"We are ready to discuss any opportunities profitable for the company and our shareholders, but we are not aware of any talks at the moment," he said.
In late July Russia's Uralkali would quit cooperation with Belaruskali and withdraw from the potash export cartel. Furthermore, Uralkali announced a change in its marketing strategy, which is now based on the volume-over-price principle. As a result of the divorce, potash prices on the global market plunged from USD 400 to less than USD 300 per tonne and Belarus had trouble selling its potash to overseas customers.
In December 2013 billionaire Mikhail Prokhorov's Onexim Group bought 21.75% in Uralkali from Suleiman Kerimov. Fertilizer maker UralChem, owned by Dmitry Mazepin, also closed a deal to buy 20% in Uralkali.
On March 6, 2014 Russian business daily Kommersant reported that Onexim is offering to set up a new trader and own 65% in it, but Belarus is not satisfied with the proposal, the sources said.
In the meantime, Uralkali saw its share of the global market of potash fertilizers grow to 23% from 22% in 2013.
Belaruskali's market share currently stands at 17%, to compare with Canada's Canpotex - 27%, Chile's SQM - 4%, while the combined share of Germany's K+S, Israel's ICL and Jordan's APC accounts for 29%.
Uralkali said in a forecast that the global potash market will expand to 56-58 million tonnes in 2014 from 54 million tonnes in 2013.
Uralkali plans to maintain this share in 2014 and is still on track to produce and sell about 12 million tonnes of potash in 2014, to compare with 9.9 million tonnes sold in 2013.
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