Abundant Availability Weakening Potassium Chloride Prices in Jordan

Continuous improvement in supply availability drives the feedstock Potash Price declines in the medium term. Weakening consumer confidence and economic dampening are plunging the market value of Potassium Chloride in a downward direction. Along with lowering coordination costs, transport operations focus on reducing transport costs. Although unrest has swept Jordan in recent weeks as truck drivers protest the rise in fuel prices, the costs are still low.

The prices of Potassium Chloride plummeted in the Jordan market during December, with costs ranging at USD 625/tonne Fertiliser FOB Hashemite as recorded by ChemAnalyst research team data. Demand is constrained by farmers prioritizing nitrogen and phosphate applications over Potassium.

The credit rating agency said it expects most fertilizer prices to fall in 2023, although they are set to remain above mid-cycle levels because of high crop prices, gas input costs, and "still restricted, although improving, supply." Feedstock Liquid Chlorine prices will ease next year on the back of easing supply constraints as new capacity in the Middle East comes on stream, and the restart of some European Potassium Chloride plants turned idled when Liquid Chlorine prices were at highs.

Despite feedstock Potash prices remaining consistent and manufacturers' quotes fluctuating within a range bound for spot market prices, Potassium Chloride prices declined. The benefits of offshoring Potassium Chloride have been observed in the Jordan market, including access to a range of skills, proximity to raw materials, and lower labour costs, but multiple supply chain crises have disadvantaged suppliers and retailers. As a result, a decline in demand and restrictions were observed, causing massive delays and affecting most manufacturers and retailers.

The benefits of offshoring Potassium Chloride have been observed in the Jordan market, including access to a range of skills, proximity to raw materials, and lower labour costs, but multiple supply chain crises have disadvantaged suppliers and retailers. As a result, a decline in demand for Potassium Chloride and restrictions were observed, causing massive delays and affecting most manufacturers and retailers.