Canpotex signs second-half 2011 potash supply deal with Sinofert

29 June 2011 15:16  [Source: ICIS news]

TORONTO (ICIS)--Canpotex has signed a deal to supply China’s Sinofert with 630,000 tonnes of potash during the second half of 2011, the Canadian potash export marketing group said on Wednesday.

Canpotex did not say how much Sinofert is set to pay, but did say that the price reflects “an approximate $70 [€49]/tonne increase above the first-half China price level".

The contract is the second concluded under a three-year memorandum of understanding (MOU) signed with Sinofert in October 2010, Canpotex said.

The contract volumes are at the low end of the MOU range, reflecting Canpotex’s tight potash supply position, it also said.

“Given Canpotex’s long-term presence in China, this new contract demonstrates, yet again, the value we place on this market,” said Canpotex’s president and CEO, Steve Dechka.

Canpotex is now fully committed for sales in the third quarter of 2011 and has significant volumes confirmed for the fourth quarter, it said.

The group sells potash produced in Saskatchewan to overseas buyers. It is owned by fertilzer firms PotashCorp, Agrium and Mosaic.

($1 = €0.70)

For more on potash, visit ICIS pricing fertilizers

By: Stefan Baumgarten
+1 713 525 2653

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