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Slowing Growth in Potassium Chloride Prices; Resilience Remains Author/Source: China Fertilizer Network Date: 2021-04-16 Clicks: 5 Recently, the upward trend in potassium chloride prices has slowed down. While the price increased by 200–300 yuan per ton in March, it rose by only about 50 yuan in the first half of April. It’s already April, yet potassium chloride prices are still rising – this is not something common at all. The main reason for the slowdown in growth is the end of spring and declining demand. On one hand, recently, due to high prices, sales of downstream products such as potassium sulfate and compound fertilizers have been sluggish, leading to a decrease in operating rates ； On the other hand, nitrogen and phosphorus are not as dominant as before; the price of nitrogen fluctuates frequently, while there is an inversion in prices between upstream and downstream markets, resulting in fewer calls for price increases in the overall fertilizer market. Therefore, although imported potassium is still being sold sparingly and domestic potassium remains somewhat in short supply, this sense of ongoing shortage is actually gradually diminishing. Moreover, high prices themselves contain \"excess value\". The sharp rise in potassium chloride prices this spring was caused by sellers taking advantage of potential future shortages, combined with the temporary shortage of domestically produced potassium, to drive up prices in advance. Initially, this price increase was entirely voluntary, but later it became more driven by external factors. On the one hand, a decline in demand means that there is greater resistance from downstream users to high prices; on the other hand, with passive factors coming into play, the willingness to raise prices decreases, so the moisture content in potassium chloride needs to be reduced. A slowdown in the rise in potassium chloride prices is good news both domestically and internationally. Internally, sales at the downstream level are poor, and there is significant pressure due to high costs; a slowdown in the rise in potassium chloride prices can provide an opportunity for relief for the downstream sector ； Externally, foreign suppliers, dissatisfied with low-price large orders below $247, may reduce supply volumes and slow down delivery times; a slowdown in the rise in potassium chloride prices can help alleviate this issue to some extent. Of course, if prices drop domestically, the impact on the international market should be even better, especially since there is definitely room for that to happen. But things can’t be as simple as just talking about them; it’s certainly not something that can be resolved by simply shouting insults or using sarcasm to suppress them. Leaving aside various other stories for now, in this unfavorable environment the negative consequences of \"tension\" have already manifested. Although the current upward trend has slowed down for the time being, there is a possibility of slight declines and fluctuations in the future, with a major drop unlikely. In other words, from a long-term perspective, potassium chloride prices are likely to remain on an upward trajectory. Spring is over, but the road ahead is still long. The key to the future market lies in supply; many figures should not be discussed publicly. In any case, it is hoped that those involved in imports will be able to assess the situation clearly, take responsibility, overcome all difficulties, and ensure an appropriate level of imports within a reasonable price range, thereby truly ensuring a stable supply and prices. To stay informed at any time about detailed and accurate market trends and related information regarding fertilizers such as potassium fertilizer, and to keep track of developments in the fertilizer market, please continue to follow China Fertilizer Network (official website: www.fert.cn, mobile app: www.fert.cn/app, or WeChat official account: fert-cn). (Adu)