Potassium Chloride prices surging due to growing demand from its downstream market
- 24-Mar-2022 2:34 PM
- Journalist: Patrick Knight
The price of raw material Potassium increases in the global market with its growing consumption in the downstream agricultural, soap, and detergent industries. Production snags jeopardize revenue and sales among the major producers of Potassium Chloride. This month, the price of Potassium Chloride in India surged to $593/ton Ex-Ahmedabad. The retrospecting sanctions by the European Union (EU) over feedstock Potash on Belarus due to its support to Russia in military attacks against Ukraine increased the product's price. In Germany, the price was observed to be $330/ton FOB Hamburg with a month-on-month increment of 1.54%.
Increasing sanctions on Belarus Potash Company (BPC) by most countries, namely, the United States, UK, and Canada, led to supply disruptions across the globe. Downstream Fertilizer industries were also affected by supply constraints and robust demand from the consumer’s end. Russia-Ukraine conflict affected the agricultural market with increasing prices of grain and oilseeds. Rising shipping costs and accelerating crude oil prices further boosted the Fertilizer market. Since the beginning of the year, the prices of Potassium Chloride shot up as the producers started to buy the product in bulk, creating a supply/demand gap resulting in a price hike.
According to ChemAnalyst, the price of Potassium Chloride is expected to increase with surging Crude prices in the global market. The production cost will more likely increase, creating supply disruption affecting the downstream fertilizer enterprises. The Potassium Chloride market is expected to surge during the forecast period, and product unavailability will increase the market sentiments. The export market of Belarus will remain affected by growing sanctions from most countries, and surging transportation costs will also boost the product's prices. Soaring energy costs, supply curtailments and trade policies will create inflationary pressure on the downstream fertilizer prices across the globe.