Global Potassium Carbonate market continues to remain firm owing to robust demand
- 23-Mar-2022 5:43 PM
- Journalist: Motoki Sasaki
The price of several commodities increased on the global market because of rising energy feedstock prices globally. Similarly, prices for Potassium Carbonate have risen in the recent months due to increased demand from the glass and soap industries and a sharp increase in the cost of production. According to ChemAnalyst, Potassium Carbonate FOB Qingdao (China) prices were USD 1360/MT this month, while FOB Hamburg (Germany) prices were USD 1150/MT.
Potassium Carbonate is an inorganic compound with the formula K2CO3 that is primarily used in the pharmaceutical, soap, and glass industries. Oxy (Occidental Petroleum Corporation), Evonik, Zhejiang Juhua Co. Ltd., AGC Chemicals, and Armand Products are the top manufacturers in the global potassium carbonate market. The companies have reported that the potassium carbonate market is moving northwards owing to its higher demand from various downstream industries and increasing cost pressure. Offtakes have also observed a seasonal push from the agrochemicals sector which reported robust growth. Furthermore, governments are attempting to cover production costs because of fluctuating crude oil prices, which ultimately affected the price trend of feedstock Caustic Potash.
In addition, the Russia-Ukraine war increased its value by affecting the three main channels: financial sanctions, commodity prices, and supply chain disruptions, resulting in a price increase for several key commodities. The Chinese government's recent announcement to close the ports due to the current lockdown has hampered the global supply chain.
As per ChemAnalyst, “Potassium Carbonate prices are rapidly rising in the German domestic market due to consistent increase in demand from the downstream pharmaceutical and food industries, whereas sales in the Chinese market remained stable amidst the ongoing shut down of few provinces. Thus, the price for Potassium Carbonate is likely to remain firm in the global market”