Israel Chem in China deals for 500,000 tonnes potash

Fertiliser and specialty chemicals maker Israel Chemicals said on Sunday it had signed contracts with several customers in China to supply a total of 500,000 tonnes of potash in the first half of 2011.

Israel Chemicals (ICL) said the price agreed was similar to the price reached by other producers in the market, which reflects an increase of $50 per tonne of potash from prices prevalent in 2010.

ICL in a brief statement provided no further details.

On Jan. 13, Russia's fertiliser producer Uralkali said its joint venture with Belaruskali, Belarusian Potash Co, signed a deal with major Chinese fertiliser importers Sinochem and CNAMPGC to supply 600,000 tonnes at $400 per tonne.

ICL signed contracts to sell 620,000 tonnes of potash to China for all of 2010, including an option for 100,000 tonnes.

Shares in ICL were up 1.3 percent to 62.58 shekels a share in morning trade, compared with an increase of 1 percent in the Tel Aviv 25 blue chip index .

ICL is a subsidiary of holding company Israel Corp , whose shares were up 1.8 percent.

Canada's Potash Corp , the world's largest fertiliser producer, owns 13.9 percent of ICL.

($1 = 3.69 shekels)