SunSirs: Affected by Costs, the Price of Potassium Sulfate Had Fallen

Price trend

This week (3.22-3.29), according to the Commodity Analysis System of SunSirs, the average price quoted by domestic industrial grade 98% calcium formate enterprises was 3,732.00 RMB/ton, a decrease of 50 RMB/ton compared to March 15th (reference price of calcium formate was 3,782.00 RMB/ton), a decrease of 1.32%.

Analysis review

Cost side:

From the data monitoring chart of SunSirs, it can be seen that the formic acid market had stabilized after rising since March. Recently, the domestic industrial grade 85% formic acid market had continued to operate steadily. The mainstream quotation range of enterprises was between 3,100-3,400 RMB/ton, and the waiting sentiment of holders for the market hasd not changed significantly compared to the previous period. New orders in the market are mainly in demand.

Supply and demand side:

Construction sector: From January to February 2024, the national real estate development investment was about 1.18 trillion yuan, a year-on-year decrease of 9.0%, which was 0.6 percentage points narrower than that of January to December 2023; Among them, residential investment was 882.3 billion yuan, a decrease of 9.7%. From January to February, the construction area of real estate development enterprises reached 6.669 billion square meters, a year-on-year decrease of 11.0%; The newly constructed area of housing was 94.29 million square meters, a year-on-year decrease of 29.7%. Among them, the newly started residential construction area decreased by 30.6%. In recent years, real estate investment had shown a significant year-on-year decline, and infrastructure demand was difficult to hedge against the impact of the real estate downturn.

The calcium formate market was driven by the increase in cement consumption in the construction industry, and its market changes were due to slow resumption of construction sites in East China, sluggish market demand, and a weak and declining cement market. The market for calcium formate was flat.

Market outlook

The short-term cost impact of calcium formate was limited, and the market was adopting a wait-and-see attitude. Holders weare actively shipping, and it is expected that the calcium formate market will remain stable and slightly fluctuate in the short term. The specific trend still needs to pay attention to downstream demand.

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