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Whoosh whoosh whoosh whoosh whoosh – potassium chloride prices rise again. Author/Source: China Fertilizer Network. Date: 2020-09-07. Clicks: 52. Potassium chloride really does see sharp price increases whenever there’s a surge in demand; it seems that the ports still haven’t had their fill yet, as domestic potassium production is also contributing to this rise, and it’s likely that border trade will see an increase as well! According to the weekly report for the first week of September from Zhongfei Net, the current mainstream price for 62% white potassium at ports is 1,870–1,900 yuan per ton, with transaction prices around 1,850–1,880 yuan per ton. These prices represent an increase of about 100 yuan per ton compared to before the rebound. At present, it is difficult to sell high-quality products at these prices, while low-quality products are also hard to find; a stalemate persists. However, sellers still show a clear willingness to maintain high prices. The prices of the other 60% red powder and 60% bright red particles have also seen a rise. As of now, the price of potassium chloride at ports has generally risen to the level corresponding to the apparent cost under large-scale contracts, around 50 yuan per ton. High-end products are difficult to sell because, first, the downstream sector does not fully endorse this round of price rebounds, believing that there is a lack of real support for them. Second, most manufacturers had already stocked up on potassium chloride raw materials by mid- to late September, with a few storing even more, so they are choosing to wait and observe for now. These days, the price of potassium chloride is rising steadily, wave after wave; some downstream users are concerned that by the time they need to make purchases, the price of potassium chloride could rise even further. On September 7, the much-anticipated new price list for September from Yanchi Salt Lake Company was finally released. The price of 60% potassium at the delivery point increased by 20 yuan per ton, reaching 1,850 yuan per ton. The monthly discounts as well as the discounts on powdered potassium were removed; as a result, the actual increase was around 100 yuan, a rise that effectively brought its price level in line with that of imported potassium. Although many agents still have goods at low prices resulting from the N-times commission rebate in August, can you still get those low prices in the current market conditions? The latest news is that the import orders for border trade in September have finally been finalized. Since the increase in the value of the dollar was not as significant as the Russians had hoped, the quantity of goods imported is said to have decreased considerably. With rising costs, a decrease in supply, and some overselling in the past, especially given the significant increase in prices for potassium from ports and domestic sources, border trade importers say they are not in a hurry to sell at the moment, so no advance quotes have been issued yet. The industry speculates that the price of 62% white potassium in Manzhouli will be at least around 1,650 yuan per ton. The downturn in the international potassium chloride market has also eased, with the CIF prices for large-grain products in Brazil seeing a slight increase after remaining stagnant for over a month. It is understood that, in addition to factors such as normal seasonal demand, similar to the situation in our country, the strikes by workers at the Belarusian Potash Company also played a role in this. Although the latest reports suggest that the company is gradually returning to normal, this ordeal has still sown the seed of supply instability in the minds of downstream parties, especially since the sellers keep coming in and adding to the problems from time to time. To this day, most people, including the author, remain skeptical about the strong rebound of potassium chloride. Perhaps everyone is pushing forward the releases for this winter and next spring? Could it be that there are problems with supplies from foreign suppliers or with the production and transportation in Qinghai? Anyway, there was already a long-term bullish outlook; it’s just that this turnaround has come sooner than expected. It seems that sellers are determined to keep prices high in the short term. Moreover, October, the month when gold prices rise every year in recent times, is approaching soon. With that, there’s no point in continuing to worry about it. We should shift our focus from understanding why there has been a rebound to figuring out how long and to what extent this rebound will last, so that we can determine our own trading prices and pricing for finished products, and take appropriate action regarding purchases. (Adu)