25 October 2013 18:38 [Source: ICIS news]
HOUSTON (ICIS)--State-owned potash producer Belaruskali said on Friday it has signed a memorandum for a three-year supply agreement to China’s Sinofert.
While no pricing details or volume estimates were released, the fertilizer producer said the transactions would involve significant amounts every year of the crop nutrient. The company did not reveal when the actual supply contract would be signed between its trading arm, Belarusian Potash Company, and Sinofert but said the agreement status was a positive sign for future cooperation.
China is the largest consumer of potash as its agricultural industry continues to grow, partially in response to a booming national population. Sinofert is China’s largest fertilizer distributor, and recent estimates place the total volume of imports to the country at approximately 6m tonnes/year of potash.
The announcement by Belaruskali comes on the heels of word that the Canpotex contract with the Chinese company will likely not occur until early 2014. Canpotex is the trading venture owned by North American producers PotashCorp, Mosaic and Agrium.
PotashCorp officials said on Thursday that until the North American agreement is finalise, sales to China through Q4 2013 will be conducted on a spot basis.
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