Israel Chem Signs Potash Deals With China

Israel Chemicals (ICL) said on Thursday it signed deals to supply Chinese customers with 500,000 tons of potash during the second half of 2011, following 500,000 tons sold in the first half.

ICL said its price is similar to recent prices recorded by other potash suppliers in the market and is about $70 a ton higher than selling prices to China in the first half of 2011.

Potash export consortium Canpotex said in late June it will supply China with 630,000 tons of the crop nutrient in the second half of 2011 and indicated the price on the new contract rose about 17.5% over previous contract levels to about $470 a ton.

The Canpotex deal followed an announcement by Belarusian Potash Co that it had agreed to sell a minimum of 500,000 tons to China with options to sell another 200,000 tons at $470 a ton on a cost-and-freight basis.

ICL, which is controlled by Israel Corp, is the world's sixth-largest producer of potash.

The number of ICL's Chinese customers has increased since 2010 and it sells its potash directly to Chinese fertilizer producers and distributors, the company said.

ICL's primary source of potash is the Dead Sea, which is in closer proximity to Asian markets than most potash producers.