Canpotex announced on Jan. 24 that it has reached agreement with Sinochem Fertilizer Macao Commerical Offshore Ltd. (Sinofert) for the supply of 700,000 mt of potash to China during the first half of 2014. Canpotex said the new contract “is priced at current and competitive market levels.”
The report follows a Jan. 20 announcement from Russian potash producer Uralkali that it had reached an agreement for first-half 2014 potash deliveries to China with a buying consortium headed by CNAMPGC, a major Chinese agrochemical corporation, for 700,000 mt at $305/mt. That level reflects a $95/mt drop from the first-half 2013 contract price of $400/mt reached between China and major potash producers in January 2013.
“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,” said Steven Dechka, Canpotex president and CEO. “We look forward to meeting China’s future growing potash needs in collaboration with our Chinese partner.”
Canpotex is the exclusive offshore marketing company owned by Saskatchewan potash producers Agrium Inc., The Mosaic Co., and Potash Corp. of Saskatchewan Inc.