Demand Boost: US Caustic Potash Prices Climb at the End of Q1 2024
Demand Boost: US Caustic Potash Prices Climb at the End of Q1 2024

Demand Boost: US Caustic Potash Prices Climb at the End of Q1 2024

  • 02-Apr-2024 2:24 PM
  • Journalist: Kim Chul Son

During the first quarter end, the cost of Caustic Potash in the US market experienced an increase, primarily driven by a rise in buying sentiment. This uptick in demand was fueled by increased orders from downstream industries, which in turn influenced the final price of Caustic Potash. At the end of March, the cost of Caustic Potash Flakes 90% was settled at USD 1059/MT FOB Philadelphia basis.

Business activity in the US showed robust growth at the close of the first quarter of the year. This was supported by a notable increase in business confidence, reflecting optimism about the broader US economy. The production of Caustic Potash also saw an uptick to meet the rising demand from potential customers. This increase in production suggests a positive outlook for the Caustic Potash market, aligning with the overall growth trend in the US economy.

In March, the growth rate of new orders from both domestic and overseas markets showed a moderate increase, contributing to a slight upward trend in prices. This slower but steady rise indicates a stable market condition, with demand gradually picking up. The downstream industries related to soaps, detergents, and other cleaning applications in the US market exhibited moderate activity, driving the consumption of caustic potash. This indicates that there was a steady or modest growth in the demand for Caustic Potash within these sectors. Costs have risen due to continued wage growth and increasing fuel prices, resulting in a notable increase in overall selling price inflation for goods and services, reaching its highest level in almost a year.

Supplier's delivery times have been steadily improving, marking the second consecutive month of shortened lead times in March. This positive trend signifies a recovery from the supply chain disruptions experienced earlier in the year. The improved performance of vendors has facilitated the timely delivery of raw materials to manufacturing units, ensuring smoother operations and production processes.

The price of Caustic Potash in the US market is anticipated to rise gradually in the coming months. This increase is expected due to potential improvements in demand from downstream sectors. As industries such as chemical manufacturing, food processing, and pharmaceuticals potentially increase their use of Caustic Potash, the market demand is likely to grow. This anticipated rise in demand could exert upward pressure on prices. In addition, inflationary pressures have begun to intensify, with input costs experiencing the most rapid increase. In response, companies have raised their selling prices. This trend suggests a potential uptick in inflationary conditions, which could impact consumer purchasing power and overall economic stability.

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