LINCOLNSHIRE, Ill., March 30, 2011 /PRNewswire/ -- Phosphate Chemicals Export Association, Inc. (PhosChem) has priced an agreement to supply approximately one million tonnes of diammonium phosphate (DAP) to two large Indian customers. This transaction is part of a three-year supply agreement for two million tonnes per year that was agreed to a year ago between the parties. The price will be $612 per tonne, CFR India. This price reflects an increase from a year ago due to strong market conditions. Shipments will occur over the period April through September 2011.
"This agreement demonstrates our commitment to serving the growing demand for phosphates in India. We are pleased to reach this agreement and look forward to continuing to serve the Indian market and our Indian customers in the years ahead," said Gordon McKenzie, President of PhosChem.
PhosChem was founded in 1974 in accordance with the provisions of the Webb-Pomerene Act and is the export marketing association for its members. The Act was created to promote U.S. exports. PhosChem is the largest exporter of concentrated phosphate from North America. Its member companies include Mosaic Crop Nutrition, LLC, a wholly-owned subsidiary of The Mosaic Company (NYSE: MOS), and PCS Sales (USA), Inc., an indirect, wholly-owned subsidiary of Potash Corporation of Saskatchewan Inc. (TSE and NYSE: POT).
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future operations. Such statements are based upon the current beliefs and expectations of management of PhosChem and its members and are subject to significant risks and uncertainties. These risks and uncertainties include but are not limited to the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures; international trade risks; changes in government policy; changes in environmental and other governmental regulation; adverse weather conditions affecting operations of PhosChem's members, including potential hurricanes or excess rainfall; actual costs of asset retirement, environmental remediation, reclamation or other environmental regulation differing from management's current estimates; accidents and other disruptions involving PhosChem's members' operations, including potential releases of hazardous or volatile chemicals, as well as other risks and uncertainties reported from time to time in the respective reports of PhosChem's members filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.
SOURCE Phosphate Chemicals Export Association, Inc.