The agreement reflects a price increase of $50 per ton over last year's deal.
Israel Chemicals (TASE: CHIM) has announced that its fertilizer division signed a potash supply contract with customers in India at an increase in price of $50 per ton. Israel Chemicals said will supply 1.1 million tons of potash this year to the customers for a total of $300 million.
The announcement is a welcome, if not entirely unexpected, development for Israel Chemicals. Last year it sold 900,000 tons under the previous contracts for a total of $200 million. "Globes" first reported in mid-May that the company had fallen in line with Canadian potash exporter Canpotex, which signed a contract for annual potash supply to Indian customers at $260-270 per ton, a $50 increase on the previous year.
Stocks of potash companies worldwide have been experiencing a revival in fortunes recently on the back of rises in prices of their products. Israel Chemicals, the second largest company in terms of market cap on the Tel Aviv Stock Exchange (TASE), has gained almost 40% this year.
Published by Globes [online], Israel business news - www.globes.co.il - on June 19, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007