The Chinese Market is Witnessing a Price Rise in the Potassium Carbonate Market
- 15-Jul-2022 4:19 PM
- Journalist: Nina Jiang
Tianjin, China: Potassium Carbonate prices, which have been steadily climbing for a while, have again surged to record highs in the Chinese domestic market. As per Data, the price of Potassium Carbonate increased by about 4.6% in June and has been growing readily. Potassium Carbonate's assessed value increased from USD 1478/MT in May to USD 1546/MT in June.
This increase in demand for Potassium Carbonate is primarily attributable to a supply deficit brought on by a lack of raw materials. Potassium imports from different nations are insufficient to meet China's demand, which has placed constraints on the Potassium Carbonate supply chain. The frequency of the delivery has also been hampered by the limited observed replenishing of imported Potassium Chloride, which is the feedstock for the manufacturing of Potassium Carbonate.
Upstream Potassium Chloride costs have been rising both domestically and abroad. In China, they have only slightly increased. Although the price of transactions can still be negotiated and altered, the quotation for Potassium Chloride is currently steady. The two leading causes contributing to the marginal increase in Potassium Chloride costs are a lack of supply and low inventory. In the upcoming days, this persistent gap between supply and demand will deepen and significantly raise the price of potassium chloride. In addition, China has been experiencing a shortage of potash fertilizer, which has again affected consumer perceptions of Potassium Carbonate. Altogether, raw material unavailability and supply chain disruption are the two major factors contributing to the price hike of Potassium Carbonate in the country.
According to ChemAnalyst, "Due to the ongoing supply deficit and difficult access to raw materials, Potassium Carbonate prices will increase even more in the upcoming days. It is expected that the prices of Potassium Carbonate would keep surging till the end of July, and the trend will continue until and unless the supply flow of Potassium Carbonate improves in the country."