Uralkali does not plan to sign a contract with China to supply potash in the second half of 2013 due to unfavorable market conditions, a company spokesman said on Friday.
Potash producers around the world keenly look out for signs of flagging demand in China, one of the world's largest importers of the pink or white crop nutrient.
"Due to large stockpiles, low prices and relatively low demand in China, the contract for 2014 will not be signed before November-December [2013]," the spokesman said.
Chinese potash demand in the second half is likely to be much weaker than expected, according to Deutsche Bank analyst Bob Kommers, who said no Uralkali-China contract was a bad indicator for potash producers globally.
"Spring application has been weaker than expected, therefore inventory levels are high and spot prices are low in China, so the expectation is that demand will not recover in the second half," Kommers said.
(Reuters)
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