Arab Potash Company sells 250,000 tonnes of fertilizer to China

02 April 2012 12:38  [Source: ICIS news]

LONDON (ICIS)--Jordan-based fertilizer producer Arab Potash Company (APC) has signed an agreement to supply China’s Sinochem Macao with 250,000 tonnes of potash in the April-June period, APC said late on Sunday.

APC and Sinochem Macao will decide on optional quantities later, APC said.

The price was left unchanged from the previous contract at $470/tonne (€353/tonne) cost & freight (CFR) and in line with agreements signed by other suppliers.

In the second half of 2011, APC supplied 300,000 tonnes of potash to China-based firm Sinofert at $470/tonne CFR.

The agreement follows a contract signed by Israel Chemicals Limited (ICL) last week to supply 550,000 tonnes of potash to several Chinese importers in the second quarter of 2012. ICL said the contracts include an option for an additional 120,000 tonnes of potash.

Belarusian Potash Company (BPC) and Canad-based Canpotex were the first suppliers to sign pacts with Chinese firms. They failed to achieve a higher price as economic uncertainty has softened demand for the global fertilizer industry.

BPC will supply 400,000 tonnes of muriate of potash (MOP) to Sinochem and China National Agricultural Means of Production Corporation (CNAMPGC) at $470/tonne CFR and 100,000 tonnes of optional quantities in April-June.

Canpotex will supply 500,000 tonnes of MOP to Sinofert in the second quarter. The new contract includes an option of an additional 200,000 tonnes for delivery during that same period.

The next round of negotiations for China is due in June when the contract price and quantities for second half 2012 will be determined.

In 2011, China imported around 6m tonnes of potash. It paid $400/tonne CFR for first-half 2011 shipments and $470/tonne CFR for shipments in the second half of the year.

($1 = €0.75)

By: Deepika Thapliyal
+44 208 652 3214

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