India potash deal to boost China price - Uralkali

(In U.S. dollars)

By Roberta Rampton

WINNIPEG, Manitoba, April 2 (Reuters) - The huge price jump for potash exports to India is a sign of things to come for China and other buyers for the rest of 2008, the chief executive of Russia's Uralkali (URKA.MM: Quote, Profile, Research), one of the world's biggest potash producers, said on Wednesday.

Vladislav Baumgertner told a BMO Capital Markets fertilizer conference that spot market prices quickly jumped to $750 per tonne from $625, effective June, after contracts set last week between India and Russian and Canadian producers.

"We are quite sure that this level can be achieved even earlier (than June), and the only crucial factor for selling at those new prices will be product availability," he said.

"A new price level definitely higher than $750 might be seen already in the third quarter," Baumgertner said.

Uralkali, which exports through Belarussian Potash Co, accounts for a third of the world's potash exports, and traditionally sets global contract prices with major importers.

China, the world's largest potash consumer, usually buys at a discount paid by importers in other markets. It has been out of the market in 2008 as it negotiates new annual contracts, first with BPC, then with other suppliers.

"In the short term, our goal is to eliminate the significant Chinese price discount relative to the spot markets and the Indian contract," Baumgertner said.