Potash marketing company Canpotex Ltd signed a deal with China's Sinofert Holdings Ltd to supply 600,000 tons of potash during the first six months of 2011.
The contract is the first concluded under a three-year memorandum of understanding signed by the company with China's largest fertilizer maker in October for at least 3.15 million tons of potash, with pricing to be negotiated every six months.
While Canpotex, the overseas potash marketing arm of Potash Corp Mosaic and Agrium, did not specify the price, it suggested it to be similar to those recently established for new seaborne imports of potash to China.
On January 13, Russia's fertilizer producer Uralkali said its joint venture with Belaruskali, Belarusian Potash Co, signed a deal with major Chinese fertilizer importers Sinochem and CNAMPGC to supply 600,000 tons at $400 per ton.
Canpotex is now fully committed for sales in the first calendar quarter of 2011, and has significant volumes confirmed for the second calendar quarter, the company said.
"China has been a key market for Canpotex for almost 40 years, and this contract is indicative of our ongoing commitment to this important and growing market," Chief Executive Steve Dechka said in a statement.
