Corrected: Canpotex inks Sinofert potash deal at $400/t rise
16 April 2008 12:29 [Source: ICIS news]
Correction: In the ICIS news story headlined "Canpotex inks Sinofert potash deal at $400/t rise" dated 16 April 2008, please read in the third paragraph ...$575/tonne (€362/tonne)... instead of ...$545/tonne (€343/tonne)....A corrected story follows.
LONDON (ICIS news)--Canadian potash marketer Canpotex has negotiated a 2008 supply contract with Sinofert at a $400/tonne increase over what it paid in 2007 on tight supply, its joint owner PotashCorp announced on Wednesday.
Canpotex supplied Sinofert with around 2.4m tonnes of potash during 2007 but will only be able supply 1m tonnes over the remainder of 2008 due to the late signing of the agreement and strong demand in other markets.
No final price was disclosed but the deal is believed to take muriate of potash (MOP) prices to around $575/tonne (€362/tonne) FOB (free on board)
Canpotex primarily ships red standard grade MOP to
“Significantly higher potash prices and extraordinarily tight supply have become much more firmly entrenched since
“With the intense pressure on global food production and continued growth in potash demand, this is the reality for our industry for the foreseeable future. This settlement highlights the importance of securing supply in an increasingly tight market,” he added.
Sinofert and the other major Chinese potash buyer, CANMPGC, are expected to agree the same $400/tonne increase with other potash suppliers.
Canpotex, the world's largest exporter of potash, is an international marketing and distribution company wholly owned by Canada-based potash producers: Agrium, Mosaic and PotashCorp.
By: Carl Roache
+44 20 8652 3214
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