Production Lags impact on Potassium Chloride Prices in the USA in July 2022

Houston USA: Potassium Chloride (KCl) Prices have been increasing internationally; however, KCl prices have hardly shown any resurgence in the USA. The price for transactions is still subject to negotiation and adjustment; however, the price for Potassium chloride is now stable. Lack of supply and limited inventory are the two main factors behind the marginal increase in Potassium chloride costs.

Additionally, the USA's lack of Potash fertilizer has impacted consumer views of Potassium carbonate. The two leading causes raising the price of Potassium chloride in the nation are a lack of raw materials and disruption of the supply chain. Potash forms the upstream for Potassium Chloride.

This rise in Potassium Chloride prices is affected by a supply shortage brought on by a scarcity of raw materials. The United States of America's demand for Potassium imports from other countries has been strong, which has put restrictions on the supply of downstream Potassium Chloride. The infrequently observed refilling of imported Potassium chloride, the feedstock used to produce Potassium carbonate, has also interfered with the supply frequency.

The prices of Potassium Chloride were observed to be hovering around USD 675/ton for technical grade on delivered basis with a monthly escalation of 1.5% as recorded by Chem Analyst pricing team data. Rising product applications across several industry verticals are the main factors driving the global caustic potash market. For instance, the use of caustic potash in the food and beverage (F&B) sector as a stabilizer, thickening agent, and pH adjuster in the manufacturing of different food items, such as chocolate, cocoa, soft drinks, and ice cream, is what is fuelling the market's expansion.

As per ChemAnalyst, "the ongoing disparity between supply and demand will widen and likely sharply increase the Potassium chloride price in the coming weeks."