ICL inks deal with Chinese customers
Israel Chemicals Ltd. has signed a framework agreement with Chinese customers for the supply of 3.3 million mt of potash over the next three years. According to the terms of the agreements, the potash selling price for each period will be set in accordance with prevailing market prices in China.
Under the framework of the agreements with the Chinese customers, ICL Fertilizers will deliver 660,000 mt of potash during the first half of 2013. The company said that the selling price will be in line with recent deals completed by other suppliers to the Chinese market. Recent business was at $400/mt CFR.
Most of the potash will be produced at Dead Sea Works and exported via Israel’s southern Red Sea port of Eilat, which has become the major transit point for shipments to the Far East. In 2010 ICL Fertilizers instituted a new marketing strategy for the Chinese market to sell directly to fertilizer producers and distributors. “Our growing customer base in the Chinese market, with an expanding basket of potash products sold in significant quantities and the multi-year terms of the contracts, all demonstrate our successful strategy aimed at reinforcing and deepening our positioning in the Chinese market,” said Dani Chen, CEO of ICL Fertilizers.