Caustic Potash Price Trend Ends December 2022 on a Bearish Note

Mumbai (India): Stagnant demand from downstream industries such as agrochemicals and pharmaceuticals directed the Caustic Potash market to witness bearish sentiments throughout December 2022. Moreover, the high upstream energy values Induced input cost pressure on the Chlor Alkali industries during December 2022.

European Caustic Potash market experienced a fall in the price trend during December 2022 owing to the dullness in the domestic inquiries from the agriculture sector amidst a weakened performance of the downstream industries and adequate availability of the product. Weak downstream demand has compelled sellers to offer discounts on Caustic Potash prices under the influence of stockpiling inventories at the end of the year and also to induce buying momentum in the regional market. The price of Caustic Potash flake was assessed at USD 1295/MT FOB Hamburg (Germany) in December 2022.

Meanwhile, Indian Caustic Potash prices declined in the last week of December 2022, as a result of weakened demand from the downstream agrochemical industry amidst adequate availability of cargoes in the country. The high supplies continued to overtake commodity demand, and the manufacturers focused on destocking piled-up inventories amidst muted domestic as well as overseas inquiries in the fourth Quarter of 2022. Meanwhile, the Caustic Potash downstream market experienced a wait-and-see attitude amongst the domestic buyers for further price negotiations. Moreover, supply chain disruptions, limited stock availability, and volatile weather conditions may affect the Caustic Potash price trajectory in 2023.

According to ChemAnalyst analysis, "Prices of Caustic Potash are likely to increase globally due to rebound in the demand from the end-user pharmaceuticals and agrochemicals industries. At the same time, Caustic Potash prices are likely to be influenced by the bullish market sentiments in the Indian market due to the rebound in the production activities in the downstream agrochemical segment. Moreover, anticipated supply constraints across the significant global economy will impact the price momentum of Caustic Potash globally in 2023. The growth of the Indian downstream agrochemical sector will be primarily driven by strong exports and constant domestic demand.