Domestic Potassium News | The downturn is still stable and has not yet been achieved

June 12, 2024, 9:21 AM

Potassium World

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Potassium chloride prices remain largely stable but show signs of gradual decline due to weak demand and inventory-clearing by small traders, leading to lower spot prices compared to major suppliers. Limited port stocks and uncertain border imports in August add to market volatility, while downstream reports suggest prices at the low end are still falling, with no clear stabilization yet. Qinghai’s domestic potash market is disorganized as manufacturers withdraw from quoting due to sluggish demand. Potassium sulfate sales are poor, exports are constrained, and production rates have dropped to curb rising inventories amid prevailing bearish sentiment. The compound fertilizer sector also struggles, with hopes for a seasonal rebound next month providing limited optimism. Overall, the potash market remains bearish, though some expect prices to hold steady in the short term without sharp declines.

The price of potassium chloride has not changed much, but there is still some phenomenon of bright and steady decline. The number of port stocks is limited, but when the demand is very deserted, some small traders are in the process of clearing their warehouses, and the price may be significantly lower than the general quotation of large traders. It is uncertain whether the border trade will import in August, but it is said that the arrival of goods will continue. There are also downstream feedback that the low-end price seems to be still dropping, and stabilization has not yet been achieved. The price of domestic potash in Qinghai is relatively chaotic, and the sluggish demand has made some manufacturers lose their interest in quotations.

The sales of potassium sulfate are not ideal, and the export is blocked, so the operating rate of the industry has dropped significantly. This move is also to prevent inventory from continuing to increase. After all, bearish prices have dominated, and inventory may mean more losses.

The current compound fertilizer market is also not ideal. It is said that there may be a turnaround next month, but the reason for its support is only that the season is approaching. Whether the potash fertilizer market can improve, it is still the mainstream to be bearish for the time being, but some people in the industry believe that there should be no plummet in the short term.

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