Belarusian Potash Company, the joint venture trader of Russia's Uralkali , has agreed to a second half potash deliveries contract with major Chinese fertilizer importers at prices $70 a ton higher than in the first half.

"The latest contract with Chinese importers will be a new price benchmark which will undoubtedly influence both spot prices and long-term contract prices," BPC Chief Executive Vladimir Nikolayenko was quoted as saying in a statement.

The trader, which handles 30% of world potash supply, agreed to sell a minimum of 500,000 tons to China with options to sell another 200,000 tons at a price of $470 per ton on a cost-and-freight basis.

BPC switched to six-month contracts with China this year after negotiations for previous years' sales stretched well into the calendar year.
The second half contract was priced higher than the $400 in the first half contract, though contract volumes were less in the second half of the year, when stockpiling of fertilizer is less intensive.

BPC said the contract was signed with Chinese state-owned oil and chemicals company Sinochem and CNAMPGC — the largest Chinese importers of mineral fertilizers.