Forced to become a hero of Liangshan – the suffering caused by potassium sulfate is indescribable_

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Forced to Become Heroes of Liangshan: The Hardships of Potassium Sulfate _ Author/Source: China Fertilizer Network Date: 2021-04-12 Clicks: 4 The price of potassium sulfate is also on the rise. Although the increase compared to the previous year is relatively small among basic fertilizers, since June to November 2020, both potassium sulfate in the water-salt system and Manganese Sulfate potassium started to climb in price, and that upward trend has continued to this day, with only brief pauses in between. The total increase has been around 500 yuan per ton, representing a rise of about 20%. However, as the author wrote in early March, the rise in potassium sulfate prices had shifted from being driven by active factors to being driven by passive ones. Over the past month, the price of potassium sulfate has continued to rise, but the situation is becoming increasingly difficult. The potash plants that were forced to become \"heroes\" are on the verge of crying… The raw material costs for potash produced in Mannheim come mainly from potassium chloride and sulfuric acid, and the prices of both of these materials have risen significantly. The price of 62% titanium dioxide at ports has risen by around 750 yuan since it started to increase around the end of July and early August last year, representing a surge of 42% ； The purchase price of sulfuric acid in many areas has doubled; currently, the price at the factory level for high-quality grades is around 600–700 yuan. On the other hand, the price of hydrochloric acid, the main by-product, has remained relatively stable, while its price in regions such as Northeast China and Guangdong, where it used to be quite high, has dropped significantly. Overall, the current average cost of potassium sulfate in Mannheim is around 2800–2850 yuan (assuming that all raw materials must be purchased externally, and the by-product is hydrochloric acid which needs to be sold) ； (excluding corporate profits), and according to data from Zhongfei Net, the current main ex-plant price for potassium sulfate in Mannheim is around 2,900 yuan. The pressure is so great that it’s not a sin for men to cry… Potassium chloride and potassium sulfate – the former can easily earn 800 by talking more, while the latter finds it hard to earn even 80! Can’t the price of potassium sulfate go up any further? I want to, but it’s too difficult! On the one hand, if we consider only the absolute value of prices without taking cost factors into account, the current price of potassium sulfate is quite high; the market conditions for downstream applications are not very favorable either. As a result, demand is insufficient, and even exports have been affected to some extent (this is not the only factor – lower prices of potassium chloride in neighboring regions and rising sea freight costs are also contributing factors) ； On the other hand, the market for potassium sulfate performed well overall last year. The operating rate in the Mannheim region remained high; although it has declined slightly at present, it is still at 78% (the average operating rate over the previous three years was 61%, and it has remained above this level since late March of last year, with an average operating rate of around 76%). Moreover, production capacity is increasing as well – the daily production capacity in Mannheim increased by 7.6% on a year-on-year basis, which intensifies the competitive pressure, a trend that is already evident in the northern market. The two are combined, so what else can be done? Cry with your mouth covered, don’t make any noise… Of course, some potassium sulfate manufacturers are still confident about the future market: demand from agriculture and for raw materials used in water-soluble fertilizers will remain strong throughout the year ； The amount of orders pending shipment is acceptable; there is no significant inventory pressure at the moment ； Competition is not strong at the moment; under general cost pressures, prices are similar in most areas. Liquidity remains low, and the price of potassium sulfate in the water and salt industry also moves in line with these trends ； Luojiu is about to enter its summer maintenance period, and its supply is already tight. As for potassium chloride, potassium sulfate manufacturers are quite conflicted about it. Hating him so much puts so much pressure on me ； But I also fear that it might turn downward; without any say in the matter, we might end up going through an even tougher period. In summary, the situation for potassium sulfate is indeed tough at the moment. Although higher costs and modest price increases might make things relatively safer, with challenges on both sides, manufacturers of potassium sulfate should plan for the future in advance – by forming strong partnerships with suppliers and customers, or by optimizing the structure of their products and by-products. As for those who have no advantages and are just holding on in the hope of luck, dry your tears that no one cares about and go do what you need to do! (Adu)