How hiked energy prices amidst Russia-Ukraine conflict impacting the market trend of Potassium Carbonate

Potassium Carbonate prices are surging in the global market due to increased demand from the downstream glass industry as flux. Potassium Carbonate prices rose in April due to limited availability, skyrocketing feedstock prices, especially Potassium Chloride, and high inflation rates. During the Russia-Ukraine conflict, rising energy prices increased inflationary pressure on consumers, which causing a key player to adjust its prices multiple times. Prices for Potassium Carbonate have increased due to global supply restrictions and trade disruptions.

Potassium Carbonate, also known as "Carbonate of Potash," or Potash, is used in the manufacture of glass, and soaps, in the pharmaceutical sector as a dying agent and a fire suppressant.

In China, Potassium Carbonate is showing an upward trajectory due to Covid cases resurgence and lockdown in several areas, which hindered production and trading activity and thus affected the product supplies, causing Potassium carbonate prices to increase. According to the ChemAnalyst database, the prices of Potassium Carbonate FOB Qingdao (China) was assessed around USD 1424/MT with the month-on-month inclination of 5% during April.

In India, Potassium Carbonate is significantly imported from China. It continued to trace an uptrend due to high freight charges because of container shortages, which resulted in supply shortfall in the international market. In addition, due to the concern over a new coronavirus strain and current energy crisis in Europe, the price remained an uphill, hampering production and operating rates. In the United States, the availability of Potassium Carbonate supplies in the domestic market has been affected due to low import volumes from South Asian countries.

As per ChemAnalyst, "Prices of Potassium Carbonate are likely to increase in the upcoming weeks across the global market backed by the strong demand from the downstream glass and pharmaceutical industries while rising energy prices are expected to soar till further normalcy in the extended hostilities.’’