Chinese and Indian buyers of potash fertilizers for grain achieve reduction of prices from global suppliers 10-20$ per tonne in the following contracts, said the leadership of ICL Israel Chemicals Ltd on Thursday.

Potash prices fell last year due to excessive power used mining, dry weather in India, which limited the production of grain and new tax of China. Agreements with Chinese and Indian buyers are set by higher priced sales in Brazil and the USA on the basis of spot price.

Suppliers, probably due to requests to return to discussing trades.

ICL always argued in favor of a more stable pricing or increasing prices, because, if the industry is looking for new power, which would take four to five years from now, then should be given the incentive to invest, said the company.

ICL is the sixth largest producer of potash in the world.

Chinese buyers, including Sinofert Holdings Ltd, and Indian importers last agreed to pay 315$ 332 and$ per ton, respectively, said ICL.

Sinofert contract expires on December 31, and the Indian contract valid until March 2016.

With ICL suppliers in China and India are Ltd Canpotex, which represents Potash Corp. of Saskatchewan, Mosaic Co, Agrium Inc, and "Uralkali" and "Belaruskali".

The company fought against the Israeli government's plan to tax mining companies and increase the revenues of the state Treasury. In protest, ICL froze or placed under review for almost $2 billion of internal projects.

But the discussions became more constructive, informed the company's management. The threat of taxes, which would cost additional $160 million annually, were replaced by regulations according to which the tax will amount to less than $100 million, the company said.

ICL little led negotiations with the shareholder Potash Corp., which owns 14% and is considering the possibility of selling its stake. Potash Corp. reported that would like to own a stake of the majority, but this interest clashed with the political opposition.

Under the leadership of the ICL, the absorption is not impossible, but Potash is not proposed to the company or to the government of Israel.

If Potash will make an offer that will trigger concerns about jobs, investment and management, which will remain in Israel, the government will assess accordingly.

Source: Thomson Reuters