For the first time, China has agreed to a one-year contract for supplies of diammonium phosphate fertilizer from the biggest U.S. producer, IMC Agrico Co., a joint venture of IMC Global Inc. of Northbrook and Freeport-McMoRan Resource Partner L.P. of New Orleans.
While the companies declined to disclose tonnage or prices, the value of the contract could be in the neighborhood of $400 million, depending on discounts. Last Friday, the posted price of diammonium phosphate in the major producing area of central Florida was raised $10, to $215 a ton.
IMC Agrico said China’s Sinochem will receive monthly shipments of about equal amounts of diammonium phosphate from January through December 1996, at market-related prices, and that shipments could approximate 1995 sales, estimated at 2 million tons by market analysts.
IMC Global stock advanced $1.12 a share Monday to close at $73.50, while Freeport stock edged up 12 cents to $19.25.
