Israel Chemicals to sell potash to India at decade-low price -sources

Chambal Fertilisers and Chemicals

11/07/2016 07:43

By Rajendra Jadhav 
    MUMBAI, July 11 (Reuters) - Israel Chemicals (ICL)  ICL.TA  
will ship potash to India at the same decade-low price agreed by 
another seller last month, two sources said, as global supply of 
the crop nutrient exceeds demand. 
    ICL's decision could pressure other key producers such as 
Russia's Uralkali  URKA.MM  and North American trading group 
Canpotex Ltd, owned by Potash Corp of Saskatchewan  POT.TO  
 POT.N , Mosaic Co  MOS.N  and Agrium Inc  AGU.TO , to consider 
offering potash at similar prices. 
    Indian Potash Ltd (IPL), one of the country's biggest 
fertiliser importers, will buy around 600,000 tonnes of potash 
at $227 per tonne on a cost and freight (CFR) basis with a 
credit period of 180 days, said the officials, who declined to 
be named as the contract has not been officially announced. 
    The price is a third lower than last year. In the last week 
of June, Belarus agreed to supply 700,000 tonnes of potash at 
the same rate to India, one of the world's top buyers of the 
material.  urn:newsml:reuters.com:*:nL8N19J2SY 
    India's potash contract with Israel Chemicals will likely be 
announced on Monday, the sources said. 
    Both IPL and ICL declined to comment on any potash contract. 
    Uralkali, the world's biggest potash producer, has said the 
price agreed by Belarus was too low and it was not yet ready to 
sign a potash supply contract with India.  urn:newsml:reuters.com:*:nL4N19K2S6 
    But Indian officials have said $227 was the new benchmark. 
Prices were as high as $490 three years ago. 
    "Already two producers have agreed this price. It is not 
possible for India to offer a higher price," said one of the 
sources involved in the latest deal. 
    India and China, the world's biggest fertiliser consumers, 
usually sign contracts earlier in the year. This year, deals 
were delayed as high stocks held by farmers in the wake of 
falling prices for agricultural commodities meant there was no 
rush to agree a deal. 
    India's deal is a rare instance of the country signing a 
potash supply contract with a major producer before China. 
 
 (Reporting by Rajendra Jadhav; Additional reporting by Tova 
Cohen in Tel Aviv; Editing by Joseph Radford) 
 ((rajendra.jadhav@thomsonreuters.com; +91-22-6180-7153 ; 
Reuters Messaging: 
rajendra.jadhav.thomsonreuters.com@reuters.net)) 
 
Keywords: ICL POTASH/INDIA