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Bearish Trends Hit European and US Potassium Carbonate Market as Fertilizer Sales Drop

The global Potassium Carbonate market underwent bearish momentum during May 2024. The declining price of essential raw material Potassium Chloride, muted demand from prominent downstream fertilizer market and surplus availability of the material remained the key factors behind the current price dip.

During May 2024, the European Potassium Carbonate market observed a bearish price movement of around 11.6%.  The primary contributor to the current dip in Potassium Carbonate prices was the fluctuating demand for Potassium in the European region. Market participants reported a notable decline in fertilizer sales across Europe, which was a major factor driving the price downturn. This decline in demand was compounded by adverse weather conditions, such as harsh windstorms and floods, which further disrupted agricultural activities and reduced the need for fertilizers. Excessive rainfall in parts of Western Europe led to waterlogging and high pest pressure, deterring farmers from investing in fertilizers. Conversely, these conditions supported exceptional crop growth in Portugal, Romania, and Spain, where the demand for Potassium Carbonate could have been expected to rise. In the United Kingdom, Germany, and Netherlands an excessively wet winter and spring, followed by recent warm weather, exacerbated pest pressures, further dissuading farmers from making bulk fertilizer purchases. Sodium Bisulfite For Pools

Bearish Trends Hit European and US Potassium Carbonate Market as Fertilizer Sales Drop

Additionally, there was sufficient availability of previously stocked-up Potassium Carbonate in the European market. The smooth inflow of cargoes with no major hindrances in supply chains reported also contributed to maintaining stable prices. Furthermore, the surge in Potassium Carbonate inventories within the region, particularly after BASF and International Process Plants (IPP) started operating with production assets capable of producing 380,000 metric tons of Potassium Carbonate per year, bolstered the stability of Potassium Carbonate prices in Europe. 

In like manner, In May 2024, the North American Potassium Carbonate market saw a notable 13% decline, continuing a downward trend from the previous week. Despite a slight increase in the price of essential feedstock Potassium Chloride during this period, its cost impact remained limited on Potassium Carbonate prices. The primary driver behind the decline in Potassium Carbonate prices was the subdued purchasing activity from key downstream fertilizer markets. Despite the ongoing planting season for major crops like rice, barley, and corn, demand for fertilizers remained low. This unexpected market behaviour was largely attributed to extreme heat waves across the region, prompting many consumers to pause their planting activities. These climatic challenges disrupted the typical seasonal demand for fertilizers, resulting in a softer market for anhydrous Potassium Carbonate.

Other than the declining demand, there were sufficient stocks of Potassium Carbonate available in the market. The ample supply, combined with reduced production costs and low purchasing activity, created a favourable environment for the continued decline in Potassium Carbonate prices.

Potassium Carbonate Market Analysis: Industry Market Size, Plant Capacity, Production, Operating Efficiency, Demand & Supply, End-User Industries, Sales Channel, Regional Demand, Company Share, Manufacturing Process, Foreign Trade, 2015-2032

Bearish Trends Hit European and US Potassium Carbonate Market as Fertilizer Sales Drop

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