* New contract priced at over $700/tonne, delivered basis
* New contract about $200/tonne below prior contract price
TORONTO, June 30 Potash Corp of Saskatchewan
(POT.TO) (POT.N) said on Tuesday its export consortium Canpotex
has signed a contract with Japanese customers covering potash
shipments for the second half of 2009.
Potash Corp, the world's largest fertilizer maker, said the
new contract priced at over $700 a tonne on a delivered basis.
The pricing of the new Japanese contract is about $200 per
tonne below last year's contract with Japanese importers, but
still slightly above recent potash pricing levels in Europe.
The price of potash -- a key crop nutrient -- has remained
stubbornly high even as demand has collapsed, as a small group
of companies, which account for roughly 75 percent of global
potash supply, have drastically cut production in a bid to
But, pricing has begun to show signs of weakening in recent
Earlier this month, Germany's K+S SDFG.DE said that high
potash prices were "unsustainable" given current market
conditions. K+S cut both its pricing and production at the
K+S cut the European price of granulated potassium chloride,
the fertilizer mineral extracted from potash ore, to 435 euros
per tonne ($609) from 555 euros ($777) per tonne previously and
added that overseas prices were also slipping.
(Reporting by Euan Rocha in Toronto; Editing Bernard Orr)