Crippling Availability of Raw Materials Vanishing Stocks of Potassium Chloride from Indian Market

Uncertainties on the ground have been induced, as Potassium Chloride or Muriate of Potash (MOP) is vanished from the Indian market amidst high demand. Indian traders and producers are battling empty inventories for raw materials while high demand from domestic consumers is stirring up worries. Traders and producers are marking no supplies for the future and even denying quoting any offer for 2-3 months.

As per ChemAnalyst data, Potassium Chloride prices have been rising since September on the back of high demand under the influence of Rabi season in India. Meanwhile, producers were trying to keep their production rate optimal and in line with feedstock availability, which was running short. Despite ideal price parity, Potassium Chloride prices have increased by more than 70% in India taking pressure from high raw material cost. Furthermore, imports were also halted due to dual energy policy in China and other transportation issues going on across regional market.

To rectify these demand-supply fundamentals, Indian government has started to explore all the possibilities for imports from Canada via official channels. Indian government has been trying to fill the supply gap by procurement from all the possible sources including Canada on the price competitive in the Indian market. However, the shortage is not expected to vanish with these imports too and might keep on affecting downstream consumers of the country.

As per ChemAnalyst analysis, Potassium Chloride prices are expected to remain buoyant, as imports might not ease the situation quickly across domestic market. As per the reliable market source, alarming shortage of raw materials has already stopped domestic manufacturers’ output, which will also take time to get resolved. Conclusively, Potassium Chloride prices, as well as availability, may not show any significant ease before 2-3 months in Indian market.