Canpotex’s South Korea MOP contracts reflect $200/tonne decrease

09 July 2009 12:28  [Source: ICIS news]

LONDON (ICIS news)--North American potash marketer Canpotex has concluded potassium chloride (MOP) contracts in South Korea at a price representing a decrease of around $200/tonne (€144/tonne), a company source said on Thursday.

The potash seller announced that it had concluded second half 2009 contract business with customers in South Korea and Taiwan at an average price equivalent to around $700/tonne CFR (cost and freight).

This price represents a decline of approximately $200/tonne on the first half 2009 contracts that Canpotex agreed with South Korean customers.

No quantities were disclosed in either case.

The lower prices are indicative of a potash market that has witnessed a dramatic demand slump. Faced with mounting stocks, producers have been forced to introduce substantial production cuts.

Today’s announcement follows Canpotex’s recent conclusion of second half 2009 contract business in Japan at an average delivered price of over $700/tonne CFR. This price was also around $200/tonne lower than the price agreed for the first half of 2009 shipments.

Canpotex is the offshore potash marketing company for Agrium, Mosaic and PotashCorp.

($1 = €0.72)

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By: Carl Roache
+44 20 8652 3214

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