Russia Oil and Gas, Potash
This year may be the most difficult in the decade for potash producers because of the scale demand reduction. One of the world's largest consumers of fertilizers - India - stopped the purchase of potassium on old contracts and postponed the signing of new ones. Because of the drought the country predicts decline in consumption by at least 22% to 3.5 million tons. China and Brazil will also buy less. The potash prices on some markets have reached a multi-year low of $200 per ton.
India, the second-largest importer of potassium in the world, has delayed the start of negotiations on its purchase for 2016 from the end of March, when the contracts with major suppliers expire, at least until June. This is reported by the Reuters, which referring to the country’s Government. The main reason is the drought, which affected the sowing, managing director of the largest local importer Indian Potash Ltd Parvindar Singh Galot explained. Because of this, agricultural crops sowing was reduced - rice, canola, corn, and India for the first time may become importer of these products.
In 2015, the production of basic chemicals in Russia increased by 6.3%. The production of all basic chemical products grew, and the largest increase in the output fell on ethylene, the Russian Statistics Service reports.