I. price trend
According to the price monitoring of the business agency, the potassium sulphate market continued to decline in October, with the price falling by about 50-100 yuan. The potassium sulphate sales were not ideal, and the prices were difficult to sell, with obvious stability and hidden decline as the main factor.
II. Market analysis
In October, the demand for potassium sulphate was low, and the market sales was not ideal. The operating rate of Mannheim potassium sulphate industry had dropped to nearly 50% during the 11th Five Year Plan period. After that, although there were ups and downs, it was still at a low level. Although there was no big change in the manufacturer’s quotation, the actual transaction prices of a considerable number of manufacturers were determined by the size of orders, and the prices were in disorder. At the beginning of the month, the price of 50 grains offered by Hebei enterprises was about 3050 yuan / ton, while at the end of the month, it dropped by 100 yuan. Some manufacturers said that the price of large orders could still be discussed. The sales of potassium sulphate in Qinghai’s water salt system is poor, mainly because the low-end of Mannheim’s potassium sulphate is basically equal to it, so there is no price advantage.
III. industrial chain
Upstream: the market performance of potassium chloride is poor, and the demand is not increasing. The unexpected high price of India’s large contract did not have a direct and obvious impact on the domestic market of potassium chloride. The port price of potassium chloride remained stable for the time being, and the transaction was still relatively cold. The only good news was that the market bearish sentiment weakened after the confirmation of India’s large contract.
Downstream: the start-up of compound fertilizer enterprises is relatively low, and the attention of enterprises to potash fertilizer is not high. Even though the signing of large contracts in India has shifted the industry’s attention, the trend of potash hypertrophy remains unchanged, and the procurement enthusiasm of compound fertilizer enterprises is not high.
IV. future forecast
Analysts of the business club believe that the demand for potassium sulfate has been unsatisfactory for some time, and the inventory pressure generally increases. Because of the lack of orders, the quotation is not meaningful. Under the increasing inventory pressure, as long as there is a real price, it can be negotiated. On the whole, the cost support is weak, the demand is hard to get better, the potassium sulfate market hit by upstream and downstream is hard to get better in the short term, at least the high-end price will continue to fall.