ICL has signed a long-term agreement with IPL the largest importer of potash in India

ICL has signed a long-term agreement with IPL, the largest importer of potash in India, for the supply of potash for the years 2027-2022. The new framework agreement replaces the previous five-year agreement signed between ECC and IPL in 2019, under the new framework agreement, ICC will supply the Indian company with 600,000 tonnes of potash in 2022 at a price of $ 590 per ton, and in return Total of $ 354 million.
This price is 33% higher than the price in the last updated contract, signed in November 2021. ICAL (-1.36% 11.59) will supply the Indian company in 2006 with 600,000 tonnes plus an option to increase supply this year by 50,000 tonnes.
ICC, under the management of Raviv Zoller, will supply the Indian company with 650,000 tons of potash in each of the years 2027-2024.
The supply prices that will be provided in accordance with the framework agreement will be determined in accordance with the potash prices that will be in the Indian market on the delivery dates.
Elad Aharonson, senior vice president at Innovative Agriculture Solutions Division at ICC, commented on the fact that the quantities supplied to the Indian company in the current five-year agreement are similar to the quantities provided in the previous agreement, explaining that ECL preferred not to significantly increase the quantities supplied to IPL. This is to maintain the flexibility to sell potash in the trading market for immediate delivery (spot) and to sell granular potash (as opposed to powdered potash needed by the Indian market) which is sold at a premium of tens of dollars to $ 100 per ton, compared to potash in powder form.
ECL has in the past shifted potash sales to the spot market in Brazil to take advantage of the high prices in this market, which averaged $ 534 per tonne in 2021 compared to $ 361 per tonne in Europe and $ 389 per tonne in Southeast Asia.
ACC's sales in the Brazilian potash market grew by 120% in 2021 compared to 2020 and amounted to $ 506 million, accounting for 29% of the potash sector's sales in 2021 compared to 19% of ACI's potash sales .Al in 2020. Prices in the Brazilian market continued to rise, reaching $ 1,000 per ton in the first quarter of 2022.