HOUSTON (ICIS)--Canpotex Limited (Canpotex) confirmed on Monday it has reached an agreement to supply 700,000 tonnes of potash to China during the first half of 2014.
The agreement is with Sinochem Fertilizer Macao Commercial Offshore Ltd (Sinofert).
Canpotex declined to reveal the price other than to state that “this new contract is priced at current and competitive market levels”.
In existence since 1972, Canpotex is the offshore marketing company owned by Canadian potash producers Agrium, Mosaic and PotashCorp.
Canpotex officials said the agreement demonstrates the continued importance of the Chinese marketplace to the Canadian fertilizer entities.
“We are very pleased to sign a supply contract with our long-term Chinese customer, and to continue our history of being a leading supplier to this important market. We look forward to meeting China’s future growing potash needs in collaboration with our Chinese partner,” said Steven Dechka, Canpotex CEO.
Canpotex’s announcement is the second major transaction concluded this month for the crop nutrient, which suffered a downturn in the second half of 2013 and saw international pricing decline as much as 15-20%.
On 20 January, Russian producer Uralkali signed a contract with its Chinese customers to sell 700,000 tonnes of potash at $305/tonne CFR (cost & freight) in the first half of 2014.