PotashCorp shares soar 5.5% on China news

17 April 2008 00:16  [Source: ICIS news]

HOUSTON (ICIS news)--Shares in PotashCorp soared 5.5% on Wednesday as the Canadian firm rode a wave of investment interest in the fertilizer sector stirred by developments in China.

Earlier on Wednesday, potash marketer Canpotex - a joint venture between PotashCorp, Agrium and Mosaic - announced it had secured an extra $400/tonne (€252/tonne) in its 2008 supply contract with China's Sinofert.

Actual prices have not been disclosed, but the increase is believed to triple the 2007 price.

PotashCorp shares closed at C$198.50 ($198.50) on the Toronto stock exchange, up C$10.35.

The company now has a market valuation of C$62.6bn, making it the third biggest listed Canadian entity.

News of the Canpotex deal came less than a week after China sent global fertilizer values soaring by announcing a massive tax hike on its own exports.

($1 = C$1)

($1 = €.63)

For more on fertilizers visit ICIS chemical intelligence

By: Stephen Burns
+1 713 525 2653

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