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
North America
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.
Asia Pacific
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.
Europe
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.
For the quarter Ending December 2021
North America
Stable demand for Potassium Carbonate from the domestic market amidst inadequate supplies remained a major reason behind overall buoyancy in Potassium Carbonate prices in US market. Production disturbance in Europe due to sudden hike natural gas cost increased the prices of several commodities in European as well as North American market during this quarter. High natural gas prices hit global market by two ways, one is due for being an important raw material and other due to for being used as an energy source for production activities. Thus, the spill over effect was observed across US market where potassium Carbonate price hovered around USD 890/MT during December.
Asia
Stable to firm offtakes from the domestic market and rising input cost has been affecting the price of several commodities including Potassium Carbonate in Asia. Major manufacturers in India have been revising their offers to sustain their profitability against rising inflationary pressure. Furthermore, demand fundamentals also remained stable from downstream Pharma, soap and glass manufacturing industries, supporting this uptrend across Indian market throughout the quarter. Potassium Carbonate price assessed as USD 1253/MT during November in India. Meanwhile, Chinese manufacturers and traders witnessed similar market sentiments like India, as the demand from the domestic market remained modest to stable which later reduced due to imposed production cuts in the country.
Europe
High input cost remained a matter of concern for European players, while demand from the North American market remained ample enough to induce buoyancy to the regional prices of Potassium Carbonate. Moreover, consistent surge in raw material cost were compelling key players to raise their offers for domestic as well as international market. However, disturbance in trading activities, halted exports activities to US market, while freight cost remined buoyant in the meantime. In addition, stable offtakes from domestic glass and pharma sector channelised the overall flow of Potassium Carbonate in European market.
For the Quarter Ending September 2021
North America
The North American market observed an upward trend in the prices of Potassium Carbonate in Q3 2021. Higher lead times were reported during the quarter due to the shortage of shipping containers and lack of domestic availability. Leading producers announced a positive revision in their Potassium Carbonate prices under a couple of factors that are escalating the overall production cost. Downstream demand from the food and preservative sectors remained firm with an increasing number of consumers opting for increasing product shelf life with the arrival of the festive season.
Asia Pacific
The overall market outlook demonstrated a marginal increment in the pricing trend of Potassium Carbonate across the Asia Pacific region in Q3 of 2021. In the Indian market, the Potassium Carbonate price gained by a significant value after witnessing a steep decline during the first week of July. The price of Potassium Carbonate was last assessed at USD 1281/MT during September. Traders revealed that they had to increase their product prices to sustain their margins during Q3, while the offtakes remained stable under the current market scenario. Moreover, rising import cost due to a critical shortage of shipping containers restrained traders to import cargoes.
Europe
In the European region, the domestic market of Potassium Carbonate showcased a positive outlook in Q3 2021. A hike in the demand for Potassium Carbonate from the downstream food, cosmetics, and pharmaceutical industries for various applications was observed in Q3. Vynova is all set to build a plant for liquid Potassium Carbonate at its site in Tessenderlo, Belgium, to support the expansion of our potassium derivatives business, with its construction starting in Q3.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, supplies of the Potassium Carbonate in the North American region were curtailed by a significant percentage owing to the diversion of major volumes of upstream Potassium Chloride to the fertilizers industries amidst the seasonal hype from the domestic as well as overseas market. Demand remained persistent from the downstream soap and detergent sector along with the active buying from the pharmaceutical industries. Offtakes observed a seasonal push from the agrochemicals sector which reported robust growth. The prices of the Potassium Carbonate observed an uptrend taking cues from the demand supply imbalance during the second quarter of 2021.
Asia Pacific
Potassium Carbonate supplies in the Asia Pacific region showcased mixed sentiments in the first half of Q2 as the pricing trend strengthened due to an unprecedented surge in demand from the soap and detergent sector. Indian demand stayed muted amidst imposed restrictions to contain the COVID spread and slackening imports and manpower shortages. Imports remain largely restricted in the month of April which served as an opportunity to the domestic players to maintain healthy margins. A leading Indian manufacturer reduced the operational rates in May due to the lack of manpower. Potassium Carbonate pricing trend declined in May and June after gaining marginal uptrend in April with Ex-Works Ahmedabad prices in June assessed at USD 1177 per tonne in June. Chinese players reported ample Potassium Carbonate inventories and reduced quarterly offers due to market surplus.
Europe
In the second quarter of 2021, the market supplies of Potassium Carbonate were curtailed significantly due to limited availability of the key feedstock Potash as majority of available volumes were diverted towards the fertilizers industry. Situation further worsened as the EU imposed the 4th level sanctions on Belarus Potash which meant hampered Potassium Carbonate production. Demand remained firm from the soap and detergent industries and offtakes were consistent from the agrochemicals industries amidst the seasonal hype in demand.
For the Quarter Ending March 2021
North America
Potassium Carbonate supplies in the North American region were constrained during the first quarter of 2021, with reportedly better seasonal offtakes of potassium into the agricultural formulation, followed by the deicing uptake of the KOH after the severe cold weather conditions in the USA led to tighten the supplies of raw materials to manufacture Potassium Carbonate. Demand surged as the offtakes were constant from the soap and detergent industry and Food preservative sector. A key manufacturer hiked the prices of Potassium Carbonate by USD 60 per tonne in February as the supply demand gap widened in the North American region.
Asia-Pacific (APAC)
During the first quarter of 2021, the supplies of the Potassium Carbonate in the region were balanced as offtakes were high and the industrial operating rates were optimum to meet the demand from the end-use segment. Regional constraints were witnessed as several Asian cargoes were diverted towards the western region in terms for better netbacks and low inventories level as the several plants in the region were on a turnaround amid the Chinese lunar New Year holidays. Demand surged from the downstream soap and detergent market. Japan also revealed its plans to impose antidumping duties on imports of Potassium Carbonate from South Korea by increasing the charges by 30.8% for next four months. India reported surplus inventory levels while downstream demand remained feeble on low enquiries from the end-customers such as detergent manufacturers and agrochemical producers. The price of Potassium Carbonate in the Indian markets was heard around USD 1268 per tonne in March.
Europe
The European Potassium Carbonate market was sluggish, due to balanced supplies in the first quarter of 2021. The plant operating rates was low in the northwestern hemisphere amid the unstable availability of feedstock, due to the transportation lag and diversion of KOH towards the other industrial applications as the general economy rebounds. Demand surge from the soap and detergent industries followed by the better offtakes from the agricultural sector.
For the Quarter Ending December 2020
Asia
Potassium Carbonate demand remained firm due to consistent increase in consumption from the soap and detergent industry in the wake of new coronavirus pandemic in Q4 of FY20. Following the abundant demand, many new companies also entered the hand wash segment after widened demand and supply gaps arising out of unprecedented consumption due to the coronavirus pandemic. Prices remained high as compared to Q3 and averaged at USD 1017 per MT in Q4 due to limited supply of the feedstock caustic potash in the month of November.
North America
High demand from glass industry coupled with the firm demand from the detergent and soap industry in Q4 due to increasing health and hygiene awareness in the wake of new COVID-19 strains is set to maintain prices high in the next quarter as well. Moreover, higher energy requirements in the feedstock Caustic Potash production would ensure pressure on the production costs for Potassium Carbonate prices for the upcoming quarters.
Europe
Glass industry revived from the lockdown as the demand picked up from the construction industry in Q4 thereby raising the demand for Potassium Carbonate in the region in Q4. Demand from soap industry grew at a much higher rate as compared to the demand in glass segment in the wake of new COVID-19 pandemic in the region. Apart from rise in domestic demand, requirements for export in the APAC region increased, thereby raising the prices of Potassium Carbonate in Q4.
