For the Quarter Ending March 2024
North America
The North American Potassium Carbonate market in Q1 2024 witnessed significant price fluctuations, primarily driven by various factors. Overall, the pricing environment was volatile, with prices experiencing both increases and decreases throughout the quarter. The USA, in particular, saw the maximum price changes. Several factors influenced Potassium Carbonate prices in the North American region.
Firstly, the availability of Potassium Chloride, a crucial feedstock for Potassium Carbonate production, played a significant role. Constraints in the supply of Potassium Chloride due to adverse weather conditions and disruptions in the petrochemical industry led to increased production costs, which in turn pushed Potassium Carbonate prices higher. Additionally, trade uncertainties and disruptions in major shipping routes, such as attacks on ships in the Red Sea, led to elevated shipping rates. This impacted transportation costs and resulted in higher prices for commodities, including Potassium Carbonate.
In the USA specifically, demand from the downstream fertilizer industry remained moderate throughout the quarter. However, the market also experienced disruptions in production due to freezing temperatures and snowstorms, leading to plant shutdowns and concerns about supply chain impacts. Overall, the pricing environment for Potassium Carbonate in the North American region was volatile and influenced by various factors, including supply constraints, trade uncertainties, and adverse weather conditions. The quarter-ending price for Potassium Carbonate in the USA was recorded at USD 1760/MT of Potassium Carbonate DEL Houston.
APAC
The first quarter of 2024 has been challenging for the Potassium Carbonate market in the APAC region. Overall, market prices have experienced a negative trend due to various factors. In China, which has seen the maximum price changes, the market has been particularly influenced by a substantial decline in the conditions of the raw material, potassium chloride. This has led to reduced production rates and downward pressure on Potassium Carbonate prices. Additionally, demand from key end-user industries such as construction, soap, and glass has remained low due to weak economic momentum, resulting in subdued market activity. The ongoing restriction on fertilizer exports in China has further constrained international demand and led to a surplus of Potassium Carbonate supplies in the domestic market. The pricing environment has been bearish, with high supply levels and low demand. The availability of affordable imports and the reduced production costs of Potassium Carbonate have contributed to the downward price trend. Seasonal fluctuations, such as the end of the Rabi crop planting season in India, have also impacted demand and prices. Furthermore, uncertainties surrounding government subsidies for fertilizers have added to market apprehensions and further dampened demand. In terms of price changes, there has been a significant decrease compared to the same quarter last year. The percentage change from the previous quarter in 2024 has also been negative. However, a detailed breakdown of these percentages is not provided. As of the end of the quarter, the latest recorded price for Potassium Carbonate FOB Qingdao in China is USD 1072/MT. Overall, the APAC Potassium Carbonate market has experienced a negative pricing environment, driven by factors such as supply surplus, low demand, and uncertainties in the global fertilizer market.
Europe
The European Potassium Carbonate market in Q1 2024 has experienced a mix of positive and negative price trends. Overall, market prices have been influenced by various factors, including the cost of raw materials, supply chain disruptions, weather conditions, and demand from downstream industries.
In Germany, the largest market for Potassium Carbonate in the region, prices have seen significant changes. In February, prices increased by 5.5% due to a surge in raw material costs, particularly Potassium Chloride, and supply chain disruptions caused by attacks on maritime vessels in the Red Sea. However, in January, prices decreased by 5.3% as a result of a bearish trend in the Potassium Chloride market and low demand from the fertilizer industry. The overall price trend in Germany during Q1 2024 has been unstable, with prices fluctuating due to changing market dynamics. The market has been influenced by factors such as low demand from the agriculture sector, wet weather conditions, and high freight rates. These factors have created a challenging market environment, leading to a bearish trend in January and a bullish trend in February. In terms of seasonality, the demand for Potassium Carbonate is expected to pick up with the onset of the fertilizer season in the spring. However, the current low agricultural activity and subdued purchasing activities in the construction and soap industry have contributed to the overall low demand in the market. In conclusion, the pricing environment for Potassium Carbonate in the European region in Q1 2024 has been unstable, with prices being influenced by various factors. The market has experienced both positive and negative price trends, depending on the specific month and market conditions. The latest quarter-ending price in Germany was USD 1700/MT of Potassium Carbonate Powder FOB Hamburg.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, the pricing of Potassium Carbonate in the North America region exhibited a bearish trend primarily attributed to persistently low demand from the downstream soap and agrochemical industries.
The subdued demand created a bearish market situation, leading to a decline in Potassium Carbonate prices. The market was further influenced by ample supply, contributing to the overall downward price trend. Despite some positive performance in the downstream construction sector, its impact on the pricing dynamics remained limited. Throughout this quarter, no plant shutdowns for Potassium Carbonate were reported. Focusing on the United States, which underwent significant price changes, the demand for Potassium Carbonate remained low, particularly in the agrochemical and industrial sectors. The winter season also played a role in reducing overall demand. Consequently, domestic prices experienced a further decline during the quarter. Specifically, Potassium Carbonate prices in the USA decreased by 2.9% compared to the previous quarter.
The quarter-end price of Potassium Carbonate (Contract) FOB Texas in the USA was recorded at USD 1348/MT, reflecting the challenging market conditions influenced by subdued demand and ample supply during the fourth quarter. In summary, the North America region experienced a bearish market for Potassium Carbonate during the fourth quarter of 2023, with low demand and ample supply driving prices downward. The United States, in particular, faced subdued demand, especially in the agrochemical and industrial sectors, leading to a decline in prices.
APAC
The fourth quarter of 2023 experienced a bearish trend for the Potassium Carbonate market in the APAC region, due to low demand from the domestic sector. The Chinese economy, especially the construction sector, experienced a downturn, resulting in weak consumption of Potassium Carbonate within the country. The product's availability remained stable, ensuring ample supplies in the market and contributing to the bearish trend. The international market played a pivotal role in determining price dynamics, with international consumption acting as a key driver for the overall price trend. In China, which observed the most significant price changes in the APAC region, Potassium Carbonate prices declined by 4% compared to the previous quarter. Challenges in the country's construction sector led to reduced demand from downstream industries such as soap and glass. The ongoing economic struggles in China further impacted the overall market. Despite these challenges, no plant shutdowns for Potassium Carbonate were reported in China during this period. The quarter concluded with the latest price for Potassium Carbonate in China standing at USD 1178/MT FOB Qingdao.
Europe
The Potassium Carbonate market in Europe encountered significant challenges during the fourth quarter of 2023, marked by persistent low demand both domestically and internationally. Contributing factors included subdued economic activities and weak demand from key sectors such as glass and agrochemicals. Germany, a major player in the market, faced additional challenges in its manufacturing sector, further impacting Potassium Carbonate demand. Global market conditions mirrored the weak demand, leading to reduced exports from Germany. Despite the challenging environment, no plant shutdowns were reported for Potassium Carbonate in Germany during the quarter. Specifically, the price of Potassium Carbonate in Germany declined by 1.4% in the fourth quarter, driven by sluggish demand from domestic and downstream sectors. The stability in product availability further contributed to the overall decrease in prices. Although the year-on-year price remained unchanged, there was an 8% decrease compared to the previous quarter. Notably, the price trend exhibited an 11% decrease in the second half of the quarter compared to the first half, reflecting ongoing low demand and ample product availability. The latest price for Potassium Carbonate Powder FOB Hamburg in Germany for the quarter stands at USD 1527/MT. In conclusion, the Potassium Carbonate market in Europe faced considerable challenges, with prices reflecting the impact of low demand and ample supply, particularly in Germany.
For the Quarter Ending September 2023
North America
In the quarter ending September 2023, the price of Potassium Carbonate experienced a continuous decrease in the North American region. The supporting factors included a slowdown in the downstream sector, a reduction in export orders, the impact of high inflation affecting consumer sentiment, and tighter financial conditions that prompted consumers to cut back on spending since the start of this quarter. Conversely, service firms also noted a decrease in production costs. The presence of available inventories also placed downward pressure on commodity prices, as the market players were selling without substantial profit margins in July 2023. Furthermore, the Potassium Carbonate prices in the USA market have not shown any strength during September 2023 as well, due to a subdued economic outlook and weak demand fundamentals. The demand from the agrochemical sector remained low along with diminished demand from the glass, soap, and food additive industries. However, the performance of the downstream construction sector was firm during this month, but it had a limited effect on the Potassium Carbonate price trend for the time being.
Asia
In Asia, the prices of Potassium Carbonate displayed mixed market sentiments in the quarter ending September 2023, owing to the fluctuations in the international offers coupled with the slow increase in the demand in the glass production industry. In September 2023, the Chinese Potassium Carbonate market experienced a notable price increase as the availability of inventories within the Chinese market remained moderate, with improvements seen in the shipping situation. Downstream consumers adjusted their purchases according to immediate demand, resulting in a slight uptick in commodity prices. However, the August prices of Potassium Carbonate followed bearish sentiment prompted by the low demand both domestically and internationally. While demand fundamentals remained relatively stable, a surplus in product availability contributed to the bearish market situation. Despite supplier optimism following a July price increase, the anticipated consumer response failed to occur during August 2023. The Potassium Carbonate market saw an unexpected surge in demand from downstream soap and glass industries, which tightened the market in July. This shift in demand occurred concurrently with a decline in manufacturing activity. Reduced manufacturing activity and supply disruptions caused by concurrent typhoons led to a drop in overall inventories and subsequently pushed market prices upward in the terminating month of the third quarter of 2023.
Europe
In the European market, the Potassium Carbonate prices witnessed mixed market sentiments in the third quarter of 2023. The price increased in July and was primarily driven by the growing uncertainty surrounding production rates as the regional market players were struggling from weather disruptions, which also had a cautious impact on consumers in the downstream sector. The concerns about reduced demand in the glass industry segment among market players were overshadowed by supply reductions within the Eurozone at the beginning of the quarter. Unlikely, the Potassium Carbonate prices in the European market declined during August and September due to slowed economic growth and weak downstream demand in the European market. The weaker demand from the glass and agrochemical sector prompted by the September further declines in both input costs and output charges deteriorating purchasing confidence amongst the Potassium Carbonate market players. Further, as per data released by the German Federal Statistical Office German exports fell more than expected in September, amidst weak global demand. This has led to stockpiled inventories within the country consequently prompting towards narrowed gap between demand and supply at the termination of the Q3.
For the Quarter Ending June 2023
North America
The North American market witnessed a depreciation of prices of Potassium Carbonate by almost 4% despite the subsidization of energy and feedstock costs due to poor demand from glass and fertilizer industries. The situation of the market was observed to be bearish throughout the end of the second quarter of 2023 as even exports orders from Europe and Canada declined as CPI in the United States increased from 303.294 in May to 303.841 in June, as per FRED data. The purchasing activities from domestic glass and fertilizer industries looked grim as the world economy displayed uncertainties that weakened demand, resulting in manufacturers facing huge amounts of unused inventories in the face of optimum production, even though disruptions at the ports of the West Coast led to the hindrance in supplies. The overall market dynamics were weak owing to global economic instability and weaker demand situations with ample availability of the product in the domestic market. The final price of Potassium Carbonate was assessed to be USD 1390/MT FOB Texas by the termination of Q2.
APAC
Throughout the second quarter of 2023, the overall market situation was bearish with the prices of Potassium Carbonate declining by more than 6%, as consumption was limited but production was optimal due to subsidized energy and stabilized costs of feedstocks. In the middle of the second quarter of 2023, demand from the fertilizer industry further slowed due to a heat wave, which affected the agriculture sector in Southeast Asia. Furthermore, towards the end of the second quarter of 2023, the inventory of traders was high as prices of the raw materials potassium chloride and carbon dioxide declined, thereby bringing down production costs. Also, the increment in the PMI from 48.8 in May to 49 in June, according to the data of the National Bureau of Statistics, indicated that manufacturing operations ran smoothly in China. However, demand remained low throughout the second quarter of 2023 as export orders from importing United States, Mexico, and Europe contracted and demand from downstream glass and fertilizer manufacturing sectors diminished. The final price of Potassium Carbonate was assessed to be USD 1210/MT FOB Qingdao (China) by the end of Q2.
Europe
Prices of Potassium Carbonate declined by almost 4% in the European market with the overall situation being bearish throughout the second quarter of 2023. This was largely due to the sluggish demand from the downstream fertilizer, soap, and glass industries, which experienced an all-time low in domestic offtakes and minimal profit margins for which the consequence was that producers experienced an oversupplied market. The market outlook was influenced by inflationary pressures and increasing interest rates in the European region, thus impacting consumer purchasing sentiments in this period. The demand for export orders also looked bleak due to the grim outlook on the world economy. In the meantime, the European monthly Producer Price Index fell in May by 0.9%, highlighting the challenge faced by the economy in reviving demand and regaining economic growth. Additionally, annual inflation was expected to be 5.5% in June 2023 down from 6.1% in May, according to an estimate from Eurostat, the statistical office of the European Union. The final price of Potassium Carbonate was assessed to be USD 1370/MT FOB Hamburg by the termination of the 2nd Quarter.
For the Quarter Ending March 2023
North America
The price of Potassium Carbonate in the USA has decreased significantly during February and March 2023 due to low demand in the domestic and international markets. The supply remained stable with ample stocks available, and no supply chain disturbances were observed. Economic activities remained low due to factors such as high inflation and interest rates. Supply has remained stable, with no disruptions in production, and no plant shutdowns have been reported. The market situation has been bearish, and the prices have been revised regularly due to frequent market shifts. The price of Potassium Carbonate in the USA was assessed at USD 1524/MT on a FOB basis during March 2023.
Asia
In February 2023, prices for a commodity in China decreased by 12.8% due to lower-than-expected economic recovery and low demand from downstream industries. In India, prices for the same commodity decreased by 9.5% in February 2023 and 6.5% in March 2023, despite a seasonal demand boost. The Indian market performed better than major economies, but low demand and expensive imports contributed to the price trend. Supplies remained moderate to stable in both countries, with ample product availability fulfilling orders. The bearish market situation was influenced by external factors, including global freight charges and spot availability.
Europe
The German market for Potassium Carbonate has been experiencing bearish trends due to uncertain market fundamentals, which have impacted the pricing dynamics of the product in the region. Demand has been moderate to low, and supplies have been stable to firm, contributing to a narrow demand-supply gap. Prices have been fluctuating due to intermittent supply chain disruptions caused by snow at some locations, coupled with variable demand. However, the reduced risk of an economic recession has generated optimism for future demand. Prices experienced a significant decline in March 2023 due to oversupply, while prices plunged unexpectedly in February 2023, settling at USD 1610/MT.
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
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
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.
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.
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.
