Canpotex Signs Potash Deal With India

Matt Hopkins Posted by Matt Hopkins|23 February 2010

TORONTO, Canada — Canpotex, the export arm of Canadian potash producers jointly owned by Potash Corp., Mosaic Co. and Agrium, has reached a deal with a consortium of Indian buyers including Coromandel International and Tata Chemicals to sell 600,000 tonnes of potash to Indian buyers at a delivered price of US$370 per tonne. The supply contract covers shipments through June 2010, reports Reuters.

The pricing of the deal indicates that potash pricing has bottomed out and demand has begun to rebound from 2009’s low levels. Analysts expect higher demand in 2010 as farmers rush to replenish soil nutrients.

Canpotex signed a contract last week to sell 350,000 tonnes of potash to Chinese company Sinofert Holdings. The price of that deal was not disclosed.

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