PotashCorp, Canpotex, Sinofert Agree on Potash Pricing
22 April 2008 Potash Corp. of Saskatchewan Inc. (PotashCorp), along with offshore marketing company Canpotex Ltd. and Chinese fertilizer company Sinofert Holdings Ltd. agreed on 2008 potash pricing at US $400 per tonne higher than 2007 prices, PotashCorp said.
Canpotex has prorated China’s 2008 volumes and due to the timing of this settlement and historic demand in other markets, has only 1 million tonnes to commit to Sinofert through the remainder of this year.
Canpotex ships primarily red standard grade potash to China, but also supplies certain amounts of white standard grade and granular product under the current agreement between the companies.
“Significantly higher potash prices and extraordinarily tight supply have become much more firmly entrenched since China’s previous contract was signed 14 months ago,” said PotashCorp President and CEO Bill Doyle. “With the intense pressure on global food production and continued growth in potash demand, this is the reality for our industry for the foreseeable future. This settlement highlights the importance of securing supply in an increasingly tight market. As the world’s largest potash company, we are committed to raising our capability to meet long-term growth in demand and we intend to capture the benefits for our shareholders as we do so.”
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