SASKATOON – Canpotex has finalized supply contracts with its major Chinese customers for potash shipments during 2015. The marketing arm for three Saskatchewan-based producers expects to ship approximately 1.8-million tonnes of potash during the year.
That’s up from the 1.6-million tonnes shipped in 2014, encouraging news for the head of Canpotex.
“We are encouraged by the strength we are seeing in Chinese potash demand,” said Steve Dechka, Canpotex’s president and chief executive officer.
“We believe these settlements help position our key customers in this region for continued growth and highlight Canpotex’s increasingly important role in supporting China’s rising potash needs.”
Under the terms of the existing memorandums of understanding, shipments could increase to a maximum of 2.5-millionn tonnes based on market demand, supply availability and logistics.
Details of pricing have not been released but Canpotex says it is at current competitive levels.
READ MORE: Canpotex signs deal to sell potash to China
In January, Canpotex announced it had signed a three-year memorandum of understanding to supply Sinofert with a minimum of 1.9-million tonnes of red standard grade potash until the end of 2017.
Canpotex is the marketing arm of Saskatchewan’s three largest potash producers – PotashCorp, Agrium and Mosaic.
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