Double Support on the Supply Side and Cost Side, Potassium Sulfate Rises at a High Level

Market analysis

This week, the domestic potassium sulfate market has risen from a high level, and the spot price has generally continued to rise. As of May 20, the average price of domestic potassium sulfate 50 grain samples was 5,433.33 CNY/ton, a change of +7.59% compared with the average price at the beginning of the month.

This week, the domestic potash fertilizer market has general momentum. The operating rate of potash Mannheim-type enterprises has limited changes and remains below 50%, and the supply in the field continues to be tight. In terms of potassium chloride, the prices of downstream potassium carbonate and potassium nitrate have risen, and enterprises are more motivated to purchase. The superimposed shipping is still less, and the supply of goods on the field is limited, and prices continue to rise, which has certain support for processing potassium sulfate enterprises. However, East China and Northeast China are still affected by domestic health events, and shipments in many regions are still hindered. The Russian-Ukrainian Bureau of Eastern Europe is still more tense, the export situation of potash fertilizer production areas is restricted to a certain extent, and the amount of imported potassium to Hong Kong is affected, and the arrival of border trade is better than that by sea. In terms of demand, the current on-site trading is general, and the high level is firm after the merchants chase the increase.

Market outlook

This week, the domestic potassium sulfate market price has risen, and the market price of potassium chloride has risen at a high level. The domestic potassium sulfate cost support is relatively strong, the demand side is generally following up, and the supply side remains tight. The improvement of border trade and port transportation and arrival is limited, and it is expected that the domestic potassium sulfate price may still be affected by tight supply and run sideways at a high level in the short term.