SunSirs: Domestic Supply Tightens, Potassium Sulfate Market Goes Flat

Price trend

According to data from SunSirs, the domestic potassium sulfate market was running smoothly in early January, and the spot price was sideways. As of January 6, the average price of samples of 50% potassium sulfate in China was 4,133.33 RMB/ton, which was a 0% increase or decrease compared with the average price level at the beginning of the month.

Analysis review

The recent performance of the domestic potash fertilizer market has been satisfactory. The supply of domestic potash fertilizer companies has tightened, and the market price of potassium chloride has continued to rise. In addition, the domestic inventory is relatively low and the supply is in short supply. The market outlook is expected to consolidate at a high level.

The operating rate of processing potassium sulfate enterprises continues to be low, and the domestic operating rate fluctuates slightly above 40%. The spot supply of potassium sulfate also remains tight, and the tight supply has limited support for spot prices. Market demand is lagging behind, and merchants have seen greater resistance to shipments. However, recent domestic companies have been expected to rise, and there is a bullish sentiment in the market. On the 6th, the ex-factory reference price of Shijiazhuang Hehe Chemical's 52% potassium sulfate powder was reported at 4,300 RMB/ton, and the ex-factory reference price of Shijiazhuang Haofang’s 50% potassium sulfate powder was reported at 4,200 RMB/ton.

Market outlook

The potassium sulfate analyst of SunSirs believes that the domestic market for potassium sulfate was flat in early January, while the market for potassium chloride rose. At present, domestic potassium sulfate cost support is acceptable, supply-side shipments are insufficient, demand-side follow-up is also insufficient, domestic potash fertilizer supply is tightened, and it is expected that domestic potassium sulfate prices may remain stable and relatively strong in the near future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.