Israel Chemicals has signed an eigh-month contract to supply an Indian customer with one million mt of potash, the company said on Sunday.
The deal with the unnamed customer -- believed to be Indian Potash Ltd -- at an average price of $490/mt, represents an increase of $120/mt over last year's level.
The agreement also includes an option to deliver an additional 100,000 mt at the same terms. Deliveries will commence in August and run through March next year.
The value of the deal is put at $490 million and Israel Chemicals is expected to sign similar agreements with other customers in India in the coming days.
Analysts expect that Israel Chemicals will increase its share in the Indian fertilizer market in the coming year based on the latest agreement.
