Caustic Potash Market Holds Firm in APAC; U.S. & Europe See Upward Price Amid Steady Demand
Caustic Potash Market Holds Firm in APAC; U.S. & Europe See Upward Price Amid Steady Demand

Caustic Potash Market Holds Firm in APAC; U.S. & Europe See Upward Price Amid Steady Demand

  • 27-Mar-2025 10:30 PM
  • Journalist: Motoki Sasaki

The prices of the caustic potash market have remained stable for the APAC region during the third week of March which is driven by balanced supply-demand dynamics, contributing to improved market conditions.

In the Asia-Pacific (APAC) region, the Caustic Potash market is showing stability in the price trend, driven by consistent demand across downstream industries such as FMCG and cleaning products. The supply has remained sufficient under the improved market conditions as there is an ample product availability in the market. The 2% decrease in freight rates have improved the trading activities for Caustic Potash across the nation due to which the purchasing activities among the manufacturers have shown improvement. Data released by the National Bureau of Statistics (NBS) showed retail sales, a gauge of consumption, rose 4.0% in the January-February period, better than a 3.7% rise in December. This data indicating that the consumption of Caustic Potash in the soaps and detergents manufacturing remained steady.

The US market has showed an increase in price trend of around 2.44% for Caustic Potash in the third week of March as despite some berth congestion reported in some of the ports across the country which leads to tight supply of the product in the market. The demand from the downstream FMCG sector has been consistent as retail sales shows signs of improvement due to the seasonal factors. The exchange rate of Euro to USD has showed a slight decline in the past week which has decreased the trading activities among the European importers.

In the European market, the price trend for Caustic Potash showed similar trend like the USA, as the increase in sales in the downstream FMCG market showed improvement than prior week supporting the price increase despite some ports across Europe are facing multiple delays for several weeks. The market has maintained momentum as a result of stable raw material costs and consistent consumer demands.

The caustic potash price trend is anticipated to remain steady, bolstered by adequate market availability and balanced supply-demand fundamentals, according to ChemAnalyst data. China's improved industrial output and retail sales figures point to stable consumption trends, which should help demand in the upcoming weeks for the Caustic Potash market. The APAC market for caustic potash is also expected to continue its upward pricing trend, supported by steady demand from the cleaning and FMCG sectors as well as increasing trade activity because of lower freight costs.

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