For the Quarter Ending December 2022
North America
The prices of Potassium Carbonate increased consistently in the North American market during the fourth quarter of 2022, backed by strong demand from downstream industries. As the downstream soap and glass industries were performing well in the market during the quarter, the offtake of Potassium Carbonate rose, which eventually increased its market prices. Though the upstream expenses and manufacturing costs fluctuated several times and avoided a steady rise during the quarter, the Potassium Carbonate market remained dominated by the demand side. Hence, the price of Potassium Carbonate (Contract) increased by 26.7% in the US market during December, when compared with the price value in September and assembled at USD 1394/MT FOB Texas.
APAC
While replicating the North American market, Potassium carbonate prices rose steadily in the Asia-Pacific region during the fourth quarter of 2022, supported by strong demand from downstream industries. The demand for Potassium Carbonate increased as the downstream soap and glass industries performed well in the market during the fourth quarter, ultimately boosting its market value. Upstream and manufacturing costs fluctuated several times and did not follow a consistent rise during the quarter, but the Potassium Carbonate market remained demand-side dominant. Thus, the price of potassium carbonate in the Chinese market in December reached USD 1461/MT FOB Qingdao.
Europe
Unlike North America and APAC, the European Potassium Carbonate market got off to a strong start in the fourth quarter of 2022. Its value rose significantly in the first half of the quarter before declining as the end of the quarter approached. Downstream demand from various industries fluctuated, which led to changes in the market price of Potassium Carbonate. The offtake of Potassium Carbonate remained unsteady due to changing market conditions in the downstream glass and soap sectors. Instability in upstream costs and manufacturing prices also impacted the overall price of the Potassium Carbonate market. Hence, in Germany, the assessed price value of Potassium Carbonate Powder was USD 1519/MT FOB Hamburg in December 2022.
For the Quarter Ending September 2022
North America
Potassium Carbonate prices declined until August and then started increasing in September in the North American market during the third quarter of 2022. The primary reason behind these fluctuations throughout the quarter was changing demand and supply fundamentals. Till August, the market was flooded with too much supply coupled with weak downstream demand from the soap and glass industries, which caused the Potassium Carbonate to follow a downward pricing trend. However, in September, the demand for Potassium Carbonate improved as these industries showed a resurgence in the market. Furthermore, amid port congestions and vessel bunching, supply chains were mostly disrupted during the month, eventually leading to a higher price value of Potassium Carbonate in the region. Hence, the assessed price value of Potassium Carbonate (Contract) in the USA was USD 1100/MT FOB Texas during September.
APAC
The prices of Potassium Carbonate followed a downward trend till August and then surged upwards in the Asia-Pacific market during Q3 of 2022 on the back of unstable supply conditions. Till August, the stocks were in abundance along with more than enough supply, which led the Potassium Carbonate pricing trend in the downward direction, also supported by weak downstream demand from soap and glass industries. However, amidst port congestions in some countries, the supply chain got disrupted in September as typhoons wreaked havoc in Northeast Asia, which caused Potassium Carbonate prices to rise significantly. Hence, the price value of Potassium Carbonate in China settled at USD 1150/MT FOB Qingdao in September.
Europe
The Potassium Carbonate prices remained unsteady throughout the third quarter of 2022 in the European region, backed by fluctuating dynamics between demand and supply. Potassium Carbonate prices declined in August but remained increasing in July and September. Potassium Carbonate started the quarter with an increase in early July. Higher industrial operation rates, excessive supply, and overflowing inventories were the significant factors contributing to the price drop of Potassium Carbonate in August, further supported by poor downstream offtake from the glass and soap industries. As the conditions reversed in September and the market experienced supply shortages owing to port congestions and demand increment, the Potassium Carbonate price turned upward. Hence, Potassium Carbonate Powder prices assembled at USD 1330/MT FOB Hamburg in Germany.
For the Quarter Ending June 2022
North America
The prices of Potassium Carbonate surged consistently during quarter 2 of 2022, backed by strong downstream demand. The increased downstream demand for Potassium Carbonate form pharmaceuticals, glass, and agrochemicals industries was one of the significant factors contributing to the price hike of Potassium carbonate in the domestic market of North America. Furthermore, the Potassium Chloride prices, which were mainly on the higher side, were another crucial reason behind the price incline of Potassium carbonate. In addition, the inclined energy costs, elevated freight charges, and congested ports amidst Russia-Ukraine war tensions further exacerbated the price value of Potassium Carbonate. Conclusively, the Potassium carbonate market value soared by approximately 4% between April and June in the USA.
APAC
The Potassium Carbonate market value first increased till May and then declined in June in the domestic market of India during quarter 2 of 2022. On the one hand, where the downstream demand was strong from glass manufacturing, pharmaceuticals, and agrochemical industries, on the other hand, the supply was constrained. As the prices of feedstock Potassium Chloride were inclining amid soaring Potassium prices in the country, the manufacturing cost of Potassium Carbonate escalated, which propelled its price value. In addition, incremented energy costs and elevated logistic charges increased the Potassium carbonate price. After the supply rate increased, the Potassium Carbonate cost declined in the domestic market. Hence, there was a demonstration of mixed sentiments by Potassium Carbonate in India.
Europe
Due to high downstream demand, Potassium Carbonate prices increased steadily throughout the second quarter of 2022. One of the leading causes of the price increase for Potassium Carbonate in the domestic market of Europe was the rise in downstream demand from the pharmaceutical, glass, and agrochemical industries. Another critical factor in the price increase of Potassium Carbonate was the price of Potassium Chloride, which was often on the higher side. Further aggravating the price value of Potassium Carbonate were the rising energy costs, increased freight expenses, and clogged ports brought on by the tensions surrounding the Russia-Ukraine war. In conclusion, Germany's market value for Potassium Carbonate increased by about 10% between April and June.
For the Quarter Ending March 2022
The market price of Potassium Carbonate rose in the second half of Q1 on the back of high demand from downstream industries. Potassium Carbonate demand from downstream agrochemicals, soap, and glasses increased in the latter half. The production disturbance in Europe due to the Russia-Ukraine war caused a hike in natural gas costs, increasing the prices of several commodities in European and North American markets during the first quarter. Further, high natural gas prices and supply disruption reduced the transport of commodities to the domestic market, hampering the demand-supply chain. Therefore, the North American market rose in mid-month of the first quarter with stability in the market, causing the price for Potassium carbonate to settle at USD 1250 FOB Texas.
After stability observed in early Q1, the Potassium Carbonate prices surged in the second half of the first quarter due to the high demand from the end-use agricultural sector. With rising demand in the ploughing season, the Potassium Carbonate market gained momentum, which was later sustained with sufficient availability of the product to cater to the demand. Potassium fertilizers are commonly used in agriculture to enhance disease resistance and drought tolerance and improve stem rigidity. In China, Potassium Carbonate prices surged in the first half, which later stabilized and settled at USD 1360 in Q1. This variation in price trend came on the back of demand-supply disruption caused due to the container shortage and port congestion, causing a reduced supply of the product to the domestic market.
In Europe, the Potassium Carbonate market observed robust demand from the fertilizer industry in the first half of Q1. Further, the Russia-Ukraine war worsened the market sentiment of Potassium Carbonate, resulting in the stability in the latter half of the quarter. The raw material Potassium Chloride values also contributed to the volatility in the prices of Potassium Carbonate. Thus, the disrupted supply chain and decreased demand for Potassium Carbonate in the domestic market in the second half resulted made its prices to settle at USD 1150 FOB in Europe.
