Potassium Iodide prices in China surged in July and early August 2025 due to tight supply, rising feedstock costs, and robust demand from pharmaceutical and healthcare sectors. Scheduled plant maintenance, inventory shortages, and elevated Iodine and Caustic Potash prices strained production margins. Export demand grew amid favorable trade conditions and declining freight rates, further pressuring supply. Analysts forecast continued bullish pricing through August, supported by strong domestic and international demand, stable production rates, and persistent cost inflation in key raw materials.
In the Chinese market, the price of Potassium Iodide went up in the first half of August 2025 after a drastic rise in the previous month. This bullish tendency is ascribed mainly to continued supply restraint, high raw materials prices, as well as strong demand across major end-user industries. Moreover, scheduled maintenance across multiple manufacturing plants in July, strained supply of Potassium Iodide, further boosting prices in the domestic market in the first half of August.
Throughout July 2025, the price of Potassium Iodide has shown a significant increase, with a fall back in inventory and the rising of input prices. The rise in the cost of Caustic Potash exerted pressure on production margins, and the significant spike in Iodine prices in China further increased the cost of production. Domestic manufacturing also decelerated throughout the month, adding to depressed output and inventory shortages. Several plants experienced planned shutdowns, reducing further the supply of Potassium Iodide within the Chinese market.
Sustained structural demand of Potassium Iodide played out as China enacted a strategic industrial policy with the aim of creating “Made in China 2025”, which was investing in long-term development of the pharmaceutical and healthcare sector. Export demand also gained traction and suppliers exploited low inventory levels and good market conditions to increase prices. Stable USD/CNY rates and good supply chain management have allowed the ease of trade, but the scarce availability of items and strong demand overseas meant trade remained buoyant, which led to rising prices.
On the demand side, Potassium Iodide consumption in China spiked in July, especially in the pharmaceutical and healthcare sector. Shortages among importers and distributors created an urgency to further procurement, and export demand spiked with a slew of new foreign orders. The falling shipping prices between Asia and Western destinations lowered landed prices, encouraging more global purchasing of Potassium Iodide. The ongoing robust domestic demand in combination with the pickup in international demand further strained the available supply, reinforcing the solid market tone through the whole month.
The imbalance between consumption and availability of Potassium Iodide continued to drive price escalation, reflecting the combined impact of active domestic purchasing, growing export commitments, and cost-efficient logistics. Market dynamics in July were characterized by tight supply conditions and broad-based demand support, setting the stage for continued bullishness in August.
Forecasting the second half of August 2025, analysts expect Potassium Iodide prices to maintain an upside trend. There is substantial upward momentum expected on increased downstream confidence and offtakes. Supply-demand fundamentals and stable supply production rate of Potassium Iodide are set to support continued bullish pricing. Raw material costs—particularly of Iodine and Caustic Potash—are also elevating, which is expected to strengthen the Potassium Iodide pricing outlook for the month. As demand remains steady domestically and internationally, Potassium Iodide expected to see a price rise for the Chinese market in upcoming weeks.
