ICL Signs Contract to Supply 600,000 Metric Tons of Potash to India During 2021

Rhea-AI Summary

ICL (NYSE: ICL) has signed a contract with Indian Potash Limited (IPL) to supply 600,000 metric tons of potash at $280 per ton through December 2021. This price is $50 above previous agreements. This deal is part of a five-year supply agreement established in 2018. ICL’s EVP, Eli Amon, noted that favorable weather, increased planted areas, and tight supply are boosting global potash demand. ICL's robust position in the Indian market is further strengthened by this contract.

Positive

• Secured a contract to supply 600,000 metric tons of potash to IPL.
• Sale price of $280 per ton is $50 higher than prior contracts, indicating improved pricing power.
• Strengthened position in a strategic market (India) as part of a long-term supply agreement.

Negative

• None.

ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals and specialty chemicals company, announced today it has signed a contract with Indian Potash Limited (IPL), India’s largest importer of potash, to supply an aggregate 600,000 metric tons of potash – with mutual options for an additional 50,000 metric tons – to be supplied through December 2021. The agreed selling price in the contract is $280 per ton CIFFO Indian ports, $50 per tonne above the previous contract. The contract is part of the five-year supply agreement signed in 2018 between ICL and IPL.

“The contract we have signed in India, one of ICL’s strategic markets, is part of the five-year supply agreement we signed in 2018 with IPL. This contract further testifies to the leading position ICL has in this market and reflects the growing positive momentum in the fertilizer market globally. Favorable weather conditions, an increase in planted areas, and tight supply are contributing to solid global demand for potash,” said ICL’s EVP Chief Commercial Officer, Eli Amon.

About ICL

ICL Group Ltd. is a leading global specialty minerals and chemicals company that creates impactful solutions for humanity's sustainability challenges in global food, agriculture, and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its passionate team of talented employees, and its strong focus on R&D and technological innovation to drive growth across its end markets. ICL shares are dually listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs over 11,000 people worldwide, and its 2020 revenues totaled approximately $5.0 billion.

For more information, visit ICL's website at www.icl-group.com.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210404005006/en/

FAQ

What is the recent contract signed by ICL with Indian Potash Limited (IPL)?

ICL signed a contract with IPL to supply 600,000 metric tons of potash at $280 per ton through December 2021.

What is the significance of the price increase in the ICL and IPL contract?

The contract's price of $280 per ton is $50 above previous agreements, reflecting improved pricing conditions for potash.

How does the ICL contract with IPL affect the company's market position?

The contract enhances ICL's strong position in the Indian market and reflects growing global potash demand.

What are the terms of the supply agreement between ICL and IPL?

The contract is part of a five-year supply agreement signed in 2018 and allows for mutual options to supply an additional 50,000 metric tons.