Canpotex Limited (Canpotex) is pleased to announce that today it has opened a sales office in São Paulo, Brazil to serve its customers in this important and growing market. Brazil is the largest market for Canpotex potash.
Following the Agrium and PotashCorp merger of equals, Canpotex’s shareholders now consist of Mosaic and Nutrien. These two shareholders each have an equal ownership in Canpotex and equal representation on the Canpotex Board of Directors.
Canpotex is fully committed on volumes through the end of February 2018. Potash prices in both the Asian and Latin American spot markets continue to firm including the major markets of Indonesia, Malaysia and Brazil. These factors reflect continued strong demand and positive agricultural fundamentals in the export potash markets.
Canpotex Limited (Canpotex) today announced a donation of up to $50,000 to the Saskatoon Food Bank and Learning Centre's Milk for Children program. This donation matches donations from the community, which would allow the Milk for Children program to provide fresh milk to thousands of children and pregnant and nursing mothers.
With the conclusion of new potash supply contracts with Chinese customers for shipments of 1.4 million MT through to the end of 2017, Canpotex confirms expected total shipments to China of approximately 2.1 million MT for this year.
"Our planned shipments of 2.1 million MT represent an increase of about 500,000 MT over 2016 levels," said Ken Seitz, Canpotex President and CEO. "This is consistent with Canpotex's view of growing Chinese potash demand."
Canpotex confirms it has concluded new potash supply contracts with its Chinese customers for shipments of 1.4 million MT through to the end of 2017. Settlement prices represent an US$11/MT increase over 2016 prices.
“We are pleased to finalize supply contracts with our diversified customer base in China,” said Ken Seitz, President and CEO of Canpotex. “We continue to see strong global demand for potash, and we look forward to continuing to support China’s growing potash needs."
The planned maintenance work scheduled for May at Neptune Terminals, Canpotex’s Vancouver terminal facility, has been successfully completed. Strong demand continues in the export potash markets and, as a result, Canpotex is now fully committed on sales through the end of July 2017.
Neptune Terminals, Canpotex's loading facility in Vancouver, B.C., will be conducting some planned maintenance during the month of May on potash-related infrastructure which will reduce potash load out capabilities during that month.
As positive agricultural fundamentals continue to strongly support potash usage in Brazil, Canpotex has finalized pricing for some smaller volumes to this major market at a new price level of US$ 250.00/MT CFR reflecting the increased demand that has been present since last year and which is continuing as we move into the second quarter of 2017.
Canpotex has finalized pricing with our Japanese customers for 1st half 2017 shipments at an increase over the 2nd half 2016 price levels. The new agreement reflects an average price equivalent to over US$ 300/MT CFR Japan depending on grade.
Canpotex has confirmed recent sales of over 50,000 MT of potash to Brazil at US$ 245/MT CFR. Fertilizer demand in Brazil reached record high levels in 2016 and such demand is expected to remain at or even exceed these record high levels in 2017.
Potash demand in all export market regions continues to be strong into 2017, and Canpotex is already fully committed on planned shipment volumes through the end of March 31, 2017. Estimates of opening potash inventory levels in all major export market regions are lower than last year's comparisons, providing a strong base of demand into 2017.
The Canpotex Board of Directors has approved a new methodology for determining the amount of increased productive capacity resulting from such completed major mine expansions as its producers may independently decide to undertake. The aggregate productive capacities of Canpotex producers are used in determining their respective export sales entitlements through Canpotex.