The Potassium Nitrate market in Jordan experienced a notable decline during the month of August 2024. The decline in Potassium Nitrate prices was influenced by a combination of supply and demand factors, alongside broader economic conditions.

The Potassium Nitrate market in Jordan faced a bearish trend by 4% due to several contributing factors which impacted the domestic market. A seasonal slowdown in agricultural activities during the summer months led to decreased demand for fertilizers. Additionally, increased domestic production and inventory build-up exerted downward pressure on prices of Potassium Nitrate. The temporary rise in production efficiency or new capacities resulted in a market surplus, further exacerbating the price drop of Potassium Nitrate.

The global potash market remained relatively stable, with steady prices internationally. However, Jordan witnessed a drop in Potassium Nitrate prices due to slower consumer demand, despite Arab Potash Company’s strong financial performance in the first half of 2024, reporting consolidated operating profits of JOD 107 million. The regional demand of Potassium Nitrate remained limited, with some producers exploring opportunities in higher-demand markets or withholding offerings until new inquiries emerged. This stability in global potash prices contrasted with the bearish sentiment observed in Jordan.

In the first seven months of 2024, Jordan's General Consumer Price Index (CPI) rose by 1.7%, reaching 110.45 points, up from 108.6 points in the same period of 2023. Key contributors to inflation included personal effects, water and sanitation, and union contributions. In July 2024, the CPI increased by 1.92% to 111 points, driven by higher costs for personal luggage, dried vegetables, and fruits. Month-over-month, the CPI edged up by 0.24%, with notable rises in vegetables and personal belongings.

Freight rates exhibited mixed trends during the month. Prices rose in the first half of August due to congestion at major hubs and tensions in the Middle East but decreased in the latter half. Carriers began lowering surcharges on routes to South Asia and Africa, indicating improved conditions and increased capacity.

Looking forward, the Potassium Nitrate market in Jordan is expected to continue facing downward pressure. The combination of low demand from fertilizer producers, a surplus in supply, and a stable global potash market suggests that prices might remain subdued. However, potential shifts in economic conditions, trade dynamics, or changes in raw material costs could influence future price movements of Potassium Nitrate. The market remains cautious, awaiting developments that could impact supply and demand in the coming months.