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Israel Chemicals sells potash to Chinese companies in estimated 870-mln-USD deal

Source: Xinhua| 2018-11-09 02:35:42|Editor: Liangyu
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JERUSALEM, Nov. 8 (Xinhua) -- Israel Chemicals (ICL) company announced on Thursday that it had signed one of the largest potash supply agreements in its history, in which it will supply three million tons of potash to Chinese customers in an estimated deal of 870 million U.S. dollars for three years.

In the new agreement, customers received options to increase the quantity of potash to be supplied to them by ICL at 750,000 tons.

The price of the goods supplied will be determined according to the price of potash in China at the time of supply - which is about 870 million U.S. dollars in current prices.

This is ICL's third contract in recent months, after the beginning of October reported a deal for the sale of 900,000 tons to other Chinese customers. In September, ICL announced a sale in India of 550,000 tons.

ICL noted that the supply prices set in the new contracts are 60 U.S. dollars per ton, 26 percent higher than the previous contracts' price.

This reflects the prices of recently signed contracts in China - for example, with BPC (Belarusian Potash Company). It is estimated that the price is 290 U.S. dollars per ton.

ICL, based in the coastal city of Tel Aviv, is a global specialty minerals and chemicals company operating potash, bromine and phosphate mineral value chains.

ICL extracts raw materials from well-positioned mineral assets and utilizes technology and industrial know-how to add value for customers in key agricultural and industrial markets worldwide.

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