Potassium Chloride Prices Rise Amid Tight Supply, Trump’s Tariff Policy Shakes Market
Potassium Chloride Prices Rise Amid Tight Supply, Trump’s Tariff Policy Shakes Market

Potassium Chloride Prices Rise Amid Tight Supply, Trump’s Tariff Policy Shakes Market

  • 04-Apr-2025 11:20 PM
  • Journalist: Yage Kwon

Potassium Chloride prices in North America experienced growth in March 2025, driven by tight supplies outside the US market and constrained delivery offers. However, in the USA’s domestic market, demand-wise, the uptake of potassium chloride remains positive across the board coupled with ample market supply. Nutrien, a market leader in the North American market has also noted that domestic and global fundamentals have remained supportive due to the upcoming spring season.

In Southeast Asia, prices of potassium chloride have increased on the back of increased demand from the palm oil farming sector. The prices are predicted to increase further in the upcoming weeks due to anticipated supply tightness in the Q2 2025 market, which could push prices of the product. Further, the prices have also increased in Northwest Europe because of buying for April application as demand in March waned off slightly due to bad weather conditions.

A major development in the North American potash market has changed the market sentiments significantly. All the nations that export fertilizers to the USA are facing fresh duties after President Donald Trump announced reciprocal tariff policies on April 2, 2025, that would eventually increase nutrient costs across the USA. The arrival of goods from the nations will have to pay a 10% tariff that is imposed on all goods.

However, the administration has excluded those nations in compliance with the US-Mexico-Canada Agreement. As potash has been listed as non-compliant, the duties have been reduced to 10% from 25% earlier, with hopes of lowering the burden on farmers of high input costs at the time of peak planting season. Additionally, the administration has also approved potassium-based fertilizer products like potassium chloride (MOP), SOP, NOP, NPK, and magnesium sulfate. Earlier, Trump encompassed potash in the American list of critical minerals and ordered fast-track permit reviews.

In the USA's home market, limited production capacity has been a major issue for a long time. Following supplies suspended from Belarus after sanctions in 2022, the US heightened its dependence on Canadian potassium chloride (MOP), the only country to rely much more significantly on one source. Usually, the USA imports around 11mn-13mn t/yr of potassium chloride (MOP). Most of the USA’s potassium chloride (MOP) supplies are imported, with 98% coming from other countries each year, according to data. Out of that, 85% comes from Canada.

Looking ahead, the potassium chloride prices are anticipated to remain resilient in April owing to solid consumer demand and low market supplies. Additionally, any new contracts in North and South America are expected to bolster the potassium chloride market positively.

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