SunSirs: Potassium Chloride Slightly Decreased in Early May
May 14 2024 15:14:55 SunSirs (John)
Price trend
According to the Commodity Analysis System of SunSirs, the domestic market for imported potassium chloride slightly declined in early May, with prices falling within 50 RMB/ton compared to the beginning of the month. As of the end of this week, potassium chloride was quoted at 2,516 RMB/ton, a decrease of 0.66%.
Analysis review
In early May, the domestic potassium chloride market continued its previous consolidation trend, with little fluctuation. In terms of imports, the price of 60% potassium chloride was mostly between 2,200-2,500 RMB/ton. Due to the low arrival volume from April to May, the domestic market had shown a basic balance between supply and demand, and there had been no surplus situation in the market. The price still remained rigid and stronger. However, downstream factories generally had a resistance towards high prices, and the peak season for spring farming procurement was gradually coming to an end. Most enterprises had already replenished their inventory in the early stage, and the demand for compound fertilizer manufacturers was decreasing.
From the downstream market of potassium chloride, the performance of the downstream potassium fertilizer market was average, with price fluctuations varying and not significant. In early May, the market price of potassium carbonate slightly increased, rising from 6,950 RMB/ton at the beginning of the month to 7,050 RMB/ton at the end of this week, an increase of 1.4%. The potassium nitrate market had slightly declined, with a decrease of 0.25%. The price had dropped from 4,962 RMB/ton at the beginning of the month to 4,950 RMB/ton at the end of this week. Overall, the downstream market for potassium chloride is sluggish, which may pose a constraint on potassium chloride in the later stage.
Market outlook
In mid to late May, the overall trend of potassium chloride market may continue to be weaker. The prices of potassium chloride in Saltlake and Zangge were temporarily stable. The downstream market of potassium chloride had temporarily remained sluggish, but with the weakening of agricultural demand in Northeast China and the weakening of potassium fertilizer demand, potassium chloride procurement may show a downward trend, and compound fertilizer factories mainly produce nitrogen fertilizer. Therefore, the price of potassium chloride may fall weakly.
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