European Potassium Chloride Prices Decrease Amidst a Slump in Orders From Importers

As per the sources, Fertilizer Grade Potassium Chloride prices in Belgium witnessed a monthly decline of 1.7% and hovered at USD 595/MT at the end of February 2023. Sources say that the disruption in the fertilizer market amid geopolitical conflicts is the key reason for declined orders for Potassium Chloride.

Russia used to be the key supplier of fertilizers to the European region. However, the increased sanctions on Russian products in February restricted the import of Potassium based fertilizers in the European region. As a negative consequence, it is hampering agriculture activities and causing food inflation in Europe.

As per the sources, Potassium Chloride's raw material "Potash" supplies rose in the European region due to tightened sanctions on Belarus which solely supplies almost 20% of the global Potash supplies. After the recent increase in sanctions on Belarus and Russia, the Asian key importers like China declined their Potash inquiries. Simultaneously, the decrement in the raw material Potash prices decreased the production costs of Potassium Chloride end-use fertilizer products, namely granular Muriate of Potash (MOP). Furthermore, in recent weeks, the fertilizer input costs have reduced significantly due to continuous declines in Natural gas costs amid surplus availability of supplies.

Earlier, Natural Gas prices soared due to imposed sanctions on Russia after the war in the East-European region and explosions at Nord 1 stream and Beixi pipelines. Potassium Chloride and downstream fertilizer production rates were affected amid the rise in input prices due to the stressed availability of Natural Gas.

According to ChemAnalyst, "Potassium Chloride and Potassium Fertilizer demand will continue to be poor in March 2023 but will recover in April 2023 with an increase in consumption from the agricultural sector during the planting season. Furthermore, the rebound in the natural gas costs will raise the cost support to the production costs of Potassium Chloride."