Demand Push Propels the Global Caustic Potash Prices Further in July 2022
- 29-Jul-2022 3:11 PM
- Journalist: Xiang Hong
The price of Caustic Potash increased during the second half of July due to the increase in demand from the end-use industries, including soaps, detergents, fertilizers, and industrial operations. With the increasing demand from the food industry, Potassium hydroxide granules are used as an acidity regulator and stabilizer designated. Moreover, It is added to a variety of processed products such as confectionery, preservatives, cocoa, or dietary supplements.
In China, the price of Caustic Potash increased by 1.4% during the second half of July, owing to the increase in the price of the feedstock Potassium Chloride. The market for Potassium chloride is currently mostly trending up in a constrained range. Although the market supply of Potassium chloride is still constrained and reasonably tight, the price of the chemical is adjusted at a high level. The downstream demand for Potassium chloride is strong, and the downstream market has a high level of consolidation. The domestic price of potash is still likely to increase in light of the strong international pricing sentiment.
In South Korea, the price of Caustic Potash increased by 1.6% during the second half of July due to an increase in demand from the downstream industries, including wineries sectors, as Caustic Potash is used as a cleaning agent and sanitizer in wineries, mainly to clean the insides of tanks from biofilms of bacteria and yeast. Due to the low inventory present in the domestic market, the manufacturers were compelled to set the selling price at a higher margin.
In Germany, the price of Caustic Potash increased by 1.6% during the second half of July due to increased demand from the local market. In addition, demand for caustic potash is on the rise in agriculture, as KOH fertilizers are commonly used to improve crop yield and increase overall productivity.
As per ChemAnalyst, it is estimated that the price of Caustic Potash will further increase in the upcoming months due to an increase in demand from the various downstream sectors. The prices would further escalate due to unpredictable raw material (Potassium Chloride) prices.