While Israel Chemicals Ltd. (TASE: ICL) investors are waiting anxiously news of a potash contract with China, Citi today published a report which states that German potash producer K+S Group AG (XETRA: SDF) has signed contracts with European buyers at €285 ($409) per ton.
This price is well above recent large potash contracts in China and elsewhere. Furthermore, some of the buyers signed forward contracts for the next six months, which market sources believe herald higher prices in the market, beginning in March.
On Friday, trade magazine "Fertilizer Week" reported that Israel Chemicals would sign a contract with China by Monday for the delivery of 300,00 tons of potash during 2010 at $350-360 per ton.
The K+S contracts in Europe bode well for Israel Chemicals, since the company has strong presence on the continent: 31% of sales in January-September 2009 were in Europe.
Israel Chemicals' share fell 1.2% by mid-afternoon to NIS 51.36.
Published by Globes [online], Israel business news - www.globes-online.com - on January 19, 2010
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