I’ve been following the major potash producers for the last...

I’ve been following the major potash producers for the last couple of months just to keep a finger on the broader industry pulse.
   
One thing that I have learned is that the Chinese have an annual contract negotiation process that locks in potash prices for the future 12mth period (not really ‘locks in’ but sets a base). This process allows the Chinese to negotiate supply and prices with producers across the globe at one time. That then subsequently sets the base for regions like India. The big boys like Potash Corp., Mosaic and Agrium all take part.

This got me thinking about the lack of Asian MOUs in our recent announcement from Paul. We must be included in the same Chinese process. I think all producers flock to China sign contracts at roughly the same time so why would DNK be any different? Pretty good form for China as I’m guessing it creates a pretty competitive environment.

In the link below, you’ll find an article about the process and the delays we’ve seen this year. It also points out that contracts may be signed in time for the International Fertilizer Associations Annual conference at end May-16. Very close now.

This may mean that we soon get some clarity on the Chinese MOUs and if they have any interest in our project. It could also be the time that one of their export credit agencies decides to co-fund the project (pure speculation from me).

I’ve asked Paul D if DNK is part of the bigger Chinese contract negotiations. He’s put up the wall of disclosure so he won’t comment on that (I actually don’t agree that it’s sensitive as the whole market knows about the Chinese process – why not confirm we’re in there?)

Link: http://www.ft.com/cms/s/0/d424e6a4-180d-11e6-bb7d-ee563a5a1cc1.html#axzz49RmqDsFb