Iron ore price extends gains on China stimulus hopes
A highly anticipated third plenum that started from Monday will outline efforts to promote advanced manufacturing.
Canpotex Limited (Canpotex) today signed a contract with Sinofert Holdings Limited (Sinofert) to supply 630,000 tonnes of potash during the second half of calendar 2011 at price levels which reflect an approximate $70.00 per tonne increase above the first half China price level.
The contract is the second concluded under the new three-year Memorandum of Understanding (MOU) signed with Sinofert in October, 2010. The contract volumes are at the low end of the MOU range reflecting Canpotex’s tight potash supply position. Canpotex is now fully committed for sales in the third quarter of 2011, and has significant volumes confirmed for the fourth calendar quarter.
“Given Canpotex’s long-term presence in China, this new contract demonstrates, yet again, the value we place on this market,” stated Mr. Steve Dechka, Canpotex’s President and Chief Executive Officer.
Sinofert is China’s largest integrated agricultural company. As a long-term business partner, Sinofert collaborates with Canpotex in delivering market development programs that provide farmer education to improve yields through balanced fertilizer applications and other best farming practices.
Operating continuously since 1972, Canpotex is the exclusive offshore marketing company owned by the three Saskatchewan potash producing companies: Agrium Inc. (TSX and NYSE: AGU), Mosaic Canada Crop Nutrition, LP, a subsidiary of The Mosaic Company (NYSE: MOS), and Potash Corporation of Saskatchewan Inc. (TSX and NYSE: POT).
