India usually sign its contract for potash purchases earlier in the year. (Representational Image)
Russia's Uralkali hopes potash producers will sign a new supply contract with India, one of its largest customers, by the end of this month, Uralkali head of sales Vladislav Lyana told a conference call on Wednesday.
Uralkali, the world's largest potash producer, also sees 2016 production between 10.8 million and 11.2 million tonnes and expects 2016 capital expenditure to total 22 billion roubles ($342 million).
"There is a good chance that India will be the first to sign ... We are in talks with China, there is no contract yet," Uralkali head of sales Vladislav Lyan told a conference call, organised for analysts after the company posted its first-quarter sales.
Both China and India, the world's biggest fertiliser consumers, usually sign their contracts for potash purchases earlier in the year. This year, deals were delayed by high stocks built up by farmers and by drought in India.
Major suppliers to India also include Belarus Potash company, Potash Corp of Saskatchewan, Agrium Inc, Mosaic and K+S.
Uralkali's previous contract with India was signed in May 2015 for twelve months and set potash supplies at 800,000 tonnes at $332 per tonne.
Uralkali also told the call on Wednesday it expected 2016 production between 10.8 million and 11.2 million tonnes and capital expenditure at 22 billion roubles ($342 million).
© Thomson Reuters 2016
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