Germany Potassium Chloride Prices Plummet Amidst Inadequate Demand
- 17-Aug-2022 1:47 PM
- Journalist: Nicholas Seifield
Frankfurt, Germany: The downstream demand for Potassium Chloride is weak, and the market has a low degree of consolidation. Mostly, the purchases are made on necessity. The cost support from the feedstock potash has decreased significantly on the global market, and domestic prices for Potash are expected to weaken further. The spot market transactions for Potassium Chloride were below average in the third week of August. Collectively, the current inventory levels were running higher amidst the dull procurement from the downstream industries contradicting the supply scenario against the active inquiries in the domestic market.
The inadequate momentum in the downstream manufacturing facilities resulted in stable operating margins. The prices of Potassium Chloride hovered around USD 611/ton in the following week resulting in a monthly de-escalation of 0.8%, as recorded by the Chem Analyst pricing intelligence.
The geopolitical conflicts amongst the major economies, coupled with the ongoing economic woes on a global scale, impacted the European markets significantly. The demand for Potassium Chloride declined in Eurozone, which lessened the fertilisers and dyestuff industries as the market participants were keener toward the finished goods, followed by the ongoing holidays in Northwest Europe. As a ripple effect, the inventory level rose consequently in the regional markets.
The Potassium Chloride market in Europe is under the influence of three challenges: build-up of port inventories, lack of demand, and low production margins. The market principles were contradictory amidst the offset by a depressed trading environment, a focused procurement of finished goods, high inventory levels, limited market transactions, and continued stability in the domestic Potassium Chloride market.
The effects of pandemic-era supply-chain disruption are beginning to ease as shipping rates fall, durable consumer spending slows, order backlogs are cleared, and queues at ports ease. Recent data suggest that core goods price inflation will slow in the coming months despite the risk of setbacks. There was ample availability of products in the regional market with the traders and the suppliers during the period as consumption reduced from the downstream sector.