SunSirs: Supply and Demand Were Imbalance, Potassium Sulfate Market Was Weak

Price trend

According to the data of SunSirs, the domestic potassium sulfate market was stable and weak this week, and the spot price of individual brands was slightly reduced. As of August 11, the average price of domestic potassium sulfate 50 grain samples was 5,200 RMB/ton, a change of -2.80% compared with the average price at the beginning of the month.

Analysis review

The momentum of the domestic potash fertilizer market fell further this week, the operating rate of mannheim-type potash sulfate enterprises remained low, and the overall operating rate was further reduced by nearly 30%. However, the downstream consumption situation was poor, offsetting the low load and low supply of potassium sulfate. The continuation of the previous export policy has affected export sales to a certain extent, and the supply pressure on the market has not decreased.

In terms of upstream potassium chloride, there were still too many arrivals from peripheral trade and ports, and both imported and domestic products were accumulated in storage. The purchasing situation of downstream enterprises such as potassium carbonate and potassium nitrate was general, the competition in the field was strengthened, and the price was reduced to the cost price. Potassium chloride did not support for processing potassium sulfate enterprises well. At present, the quotations in the potassium sulfate field have fallen, the profit situation of enterprises is not good, the quotations in the Northeast and other regions are upside down, the news of new orders is sparse, and traders respond that the downstream follow-up is slow.

Market outlook

The potassium sulfate analyst of SunSirs believes that the domestic potassium sulfate market is stable and weak this week, and the potassium chloride market is falling. The domestic potassium sulfate cost support is weakened, and the supply is low, but the demand-side follow-up is poor, and the superimposed market supply is more. It is expected that the domestic potassium sulfate price may continue to weaken due to poor demand in the short term.

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