Dull Demand Leads Potassium Carbonate Prices to Fall in the US and Europe in December 2023

Prices of Potassium Carbonate have witnessed a bearish trend across the global market due to depreciating prices of feedstock Potassium Chloride which eased production costs in the month of November. The prime reason for the depreciating prices of the Potassium Carbonate was due to the low demand of glass from the poor performance of the construction industry and the low demand from the detergent industry due to progressing winter season.

Prices of Potassium Carbonate have depreciated by almost 1.5% in November across the US market due to depreciating prices of feedstock Potassium Chloride which also depreciated by approximately 2% due to the low demand from the agriculture sector, which consequently eased production costs. Demand for Potassium Carbonate generally remained low as the peak winter season generally subdued the demand from the detergent industry. The performance of the construction industry was largely disappointing with new home sales declining by 12.2% in November which continued to reduce the consumption from the glass industry. Even though demand from the FMCG industry was recorded to be largely constant with the demand for glass originating from the electronics sector, this demand for Potassium Carbonate was not sufficient to improve the current market situation of the product. Mortgage rates were recorded to have continued to their declining trend with current mortgage rates standing at 6.67% for a 30-year term and 5.95% for a 15-year term, according to Freddie Mac. Additionally, inflation rates were recorded to have increased which was largely indicated by the unexpected increment of 0.1% in the CPI.

Across Germany, prices of Potassium Carbonate witnessed a declination of more than 5% due to depreciating prices of feedstock Potassium Chloride due to off season period from the fertilizer industry. The month of November saw the construction industry across Europe remaining in a slowdown with the residential sector once again performing the worst amongst civil engineering and commercial building sectors. Demand for glass across the construction sector remained highly unfavorable, which was further highlighted by the steep downturn in new orders, elevated interest rates and high construction costs. The average prices paid for building materials and products also fell during this period, which continued to worsen the market situation for Potassium Carbonate. The bursting of a speculative bubble across the housing market in Germany compelled prices of house to witness a decline of 10.2% in the third quarter. With house building permits continuing to decline, the demand of Potassium Carbonate continued to deteriorate. Progressing winter season also reduced the demand of Potassium Carbonate from the secondary detergent industry.