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As of September 4, the benchmark price for imported potassium chloride (as tracked by SunSirs) stood at 3,333.33 RMB/ton. Compared to the price of 3,416.67 RMB/ton on September 1, the price fell by 83.34 RMB/ton last week, a decline of 2.44%.
Fundamental drivers: Deepening pattern of domestic weakness and external strength
discharge of domestic supply pressure: As previously mentioned, domestic import volumes have hit record highs, and high port inventories have have become a "Sword of Damocles" hanging over market prices. To decrease inventory, holders have been forced to reduce prices to move stock, causing the center of gravity to spot prices to steadily decline.
Demand side: Operating rates among downstream compound fertilizer producers remain low, and there is minimal willingness to purchase raw material potash; procurement is largely limited to immediate needs. This sluggish demand fails to support a price rebound; instead, it exacerbates the direction of slow, persistent price erosion.
Inverted domestic-international price spread: while international prices remain high—supported by oligopolistic market manage and prolonged contract pricing—massive domestic inventories have temporarily decoupled the regional market from international cost-support dynamics. Pricing is now driven by the interplay of domestic supply and demand, causing domestic prices to weaken independently.
Market Outlook:
Overall, the potassium chloride market this week is in a typical phase of seeking a bottom amidst weakness. Prices are expected to maintain a fluctuating, slightly bearish direction in the short term.
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