The contract price has been set at US$230/t of potash fertilizers on the terms of delivery to the buyer's port (CFR). Uralkali has said the agreement "reflects the current market situation, in contrast to the commercial terms of the Chinese contract, which were considered suboptimal by most companies in the industry."
The contract price for the two companies' previous agreement, which ran from October 2019 to 31 March 2020, was undisclosed but was set at the then market level, according to Uralkali.
Alexander Terletsky, Uralkali Trading CEO, commented: “Uralkali believes that overall the price parameters of this agreement reflect the current market environment and consider the interests of both consumers and producers equally in the economic crisis, while supporting the company's position in one of its key markets.”