Israel Chemicals Ltd. (TASE: ICL) unit, ICL Fertilizers, will sell potash to its Chinese customers at $470 a ton, $70 a ton higher than prices to China during the first half of 2011. Under the terms of the current contract, 500,000 tons will be delivered in the second half of 2011 for $235 million (about NIS 800 million). Israel Chemicals is controlled by Israel Corp. (TASE:ILCO).

ICL reported that since 2010, it has broadened its customer base in China, and sells potash directly to Chinese fertilizer producers and distributors. The new agreements consolidate ICL's major logistical advantage as a potash exporter to Southeast Asian markets, and continues to establish its position as an important exporter of large quantities to the Chinese and Indian markets.

The current selling price per ton is similar to recent prices recorded by other potash suppliers who supply potash to the Chinese market. At the end of June, the Belarus Potash Company (BPC) signed a potash deal with Chinese customers at $470 per ton, for a similar amount of 500,000 tons of potash.

"We are proud to play a prominent role in exporting potash to China, as well as additional fertilizers throughout the world, which help increase agricultural output and food production throughout the world, and aid the struggle to decrease world hunger," said ICL Fertilizers CEO Dani Chen.

Published by Globes [online], Israel business news - www.globes-online.com - on July 7, 2011

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