For the Quarter Ending September 2024
North America
In Q3 2024, the North American Caustic Potash market exhibited to a mixed trend in prices. The first two months of Q3 remained weak for Caustic potash. Transaction volumes weakened, providing insufficient support to sustain higher prices. Initial market responses in the export market have been weaker than expected. Moreover, Hurricane season in the USA has caused a significant economic downturn and muted manufacturing activities in the downstream sectors of the region. Companies are minimizing stockpiling and making purchases based on current production requirements rather than future projections. The last month of Q3, the cost of Caustic Potash surged due to shortage of material The recent hurricane impacted production facilities and created logistical challenges nationwide, resulting in decreased supply and increased prices. This scarcity, coupled with a surge in demand from downstream sectors, created a bullish pricing environment, pushing prices upwards.
Within the USA, the market witnessed the most substantial price changes, reflecting the overall trend in North America. Interestingly, the second half of the quarter saw a 2% price increase from the first half, highlighting a strengthening market sentiment.
As Q3 2024 ended, the latest recorded price for Caustic Potash 45% Lye FOB Ohio in the USA stood at USD 640/MT, solidifying the overall positive pricing environment observed throughout the quarter.
APAC
The third quarter of 2024 has seen a downward trend in Caustic Potash prices in the APAC region, driven by weak demand and ample supply in the market. Export orders were subdued, declining slightly for the first time this year due to worsening external conditions. Meanwhile, purchasing activity also decreased slightly in August, largely because Chinese manufacturers had ample input stock, which increased during the month. Factors such as reduced buying sentiment among enterprises, low restocking activities in downstream industries, and disruptions in supply chains due to global conditions have contributed to the declining prices. The prices of feedstock have been declining in the Chinese market due to weak buying sentiment among enterprises. Demand for these products remains low, with downstream industries postponing restocking. Additionally, the Mid-Autumn Festival holidays have further dampened trading activities. The quarter-on-quarter change of -1% and the comparison between the first and second half of the quarter at -2% further highlight the negative pricing environment. The latest quarter-ending price of USD 805/MT for Caustic Potash FOB-Xingang in China signifies the overall decreasing sentiment in the market, with stability and bearish conditions prevailing.
Europe
The third quarter of 2024 has been challenging for the Caustic Potash market in Europe, marked by decreasing prices. Several significant factors influenced this trend. Weak demand from downstream industries, oversupply in the market, and reduced purchasing activity have all contributed to the stability of prices. During the summer season has reduced market activities. Buyers have postponed their purchases on account of poor finished product sales. In the Netherlands, which experienced the most significant price changes, the market saw a correlation between decreasing prices and the overall trend in Europe. Europe have not seen a notable upturn, and businesses are managing their operations based on the current demand scenario. Furthermore, the quarter-on-quarter decrease of -9% highlighted the ongoing downward pressure on prices. The comparison between the first and second half of the quarter, with a decrease of -3%, further emphasized the declining price trend. The quarter ended with the price of Caustic Potash Flake 90% FD Rotterdam in the Netherlands at USD 1220/MT, reflecting the overall negative sentiment in the pricing environment.
South America
Throughout Q3 2024, the South American Caustic Potash market experienced a period of decreasing prices, influenced by a combination of factors. Weak demand from downstream sectors, both domestically and internationally, played a significant role in driving prices down. The market was further impacted by reduced orders from overseas markets, high freight rates, and a general hesitancy among factories to replenish inventories. In Brazil specifically, the market witnessed the most significant price changes, reflecting the overall trend in the region. Seasonal factors, such as the typical slowdown in demand during July, also contributed to the declining prices. Overall, the Caustic Potash market in South America saw a -2% decrease in prices compared to the same quarter last year, with a similar -2% change from the previous quarter in 2024. The second half of the quarter mirrored the downward trend, resulting in a -2% price difference compared to the first half. The quarter-ending price for Caustic Potash flakes 90% CFR Santos in Brazil stood at USD 1030/MT, indicating a consistent negative sentiment in the pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Caustic Potash market experienced a consistent decline in prices, driven predominantly by subdued demand and ample supply. Key factors influencing this trend included weak downstream purchasing activity, high inventory levels, and cautious market sentiment among buyers. Despite stable supply chains and an absence of significant plant shutdowns, the proliferation of oversupply conditions exerted downward pressure on prices. The industry faced a challenging environment where logistical efficiencies and reduced delivery times did little to stimulate market demand.
Focusing on the USA, which saw the most pronounced price changes, the market exhibited a clear downward trajectory. Seasonal variations played a role, with summer demand remaining low, especially from sectors such as soap and detergents. This was compounded by a 3% price decrease compared to the same quarter last year and a notable 4% decline from the previous quarter of 2024. The price difference between the first and second halves of the quarter further underscored this negative sentiment, showing a 3% drop.
The latest quarter-ending price of USD 625/MT for Caustic Potash 45% Lye FOB Ohio reflects this overall bearish market stance. The consistent decrease in prices indicates a negative pricing environment, influenced by a combination of weak demand, high inventories, and cautious purchasing behavior from downstream industries.
APAC
In Q2 2024, the Caustic Potash market in the APAC region experienced a notable price decline, driven by several key factors. The overarching market sentiment was bearish, largely due to a combination of excessive supply, muted demand, and global logistical challenges. These elements collectively exerted downward pressure on prices, causing manufacturers to reduce quotation values to maintain inventory turnover. South Korea, in particular, epitomized the region's maximum price changes, influenced by an oversupplied domestic market and subdued downstream consumption, especially from the soaps and detergents sectors. Compounding these issues were escalated production costs and the strengthening of the US dollar, which adversely impacted export competitiveness. The seasonal fluctuation further exacerbated the situation, failing to provide the usual demand uptick observed during this period. Analyzing the year-over-year change, the prices plummeted by -35%, reflecting a stark contrast from Q2 2023. Compared to the previous quarter in 2024, prices saw a -9% decline, indicating a consistent downward trend. The quarter concluded with the price of Caustic Potash at USD 850/MT FOB Gwangyang in South Korea, affirming the negative pricing environment. This significant decrease highlights a challenging period for market participants, characterized by a continuous oversupply and lackluster demand, ultimately hindering price recovery.
Europe
During Q2 2024, the Caustic Potash market in Europe experienced a notable downturn, characterized by declining prices and subdued demand. Key factors driving this trend include a significant reduction in purchasing activity and inventory stocks within the manufacturing sector, which led to a decrease in demand for inputs such as Caustic Potash. Furthermore, the availability of ample supply combined with hesitant restocking behaviors from downstream industries exacerbated the downward pressure on prices. The easing of inflationary pressures and improved supplier logistics also contributed to the reduction in input costs and final product prices, fostering a competitive market environment. Germany, in particular, witnessed the most pronounced changes in Caustic Potash pricing. The quarter concluded with a Caustic Potash Flake 90% price of USD 1220/MT FOB Hamburg, underscoring a predominantly negative pricing environment. The market dynamics in Germany, driven by excess supply and weakened demand, illustrated the broader challenges faced by the Caustic Potash sector in Europe during this period. This is a gentle reminder to expedite the completion of our landing pages and ensure they are finished by 26th July. If you encounter any issues or foresee any delays, notify me immediately so we can address them promptly.
For the Quarter Ending March 2024
North America
In the US market, Caustic Potash has seen a steady price trend amid a backdrop of decreased feedstock prices for Potassium Chloride. The downstream sectors, including detergents, soaps, and other cleaning agents, continue to show moderate demand for Caustic Potash.
The start of the month was marked by poor weather conditions affecting the supply chain, but the latter quarter witnessed a return to normal supply levels. This fluctuation in supply has impacted the market dynamics, but overall, the Caustic Potash market remains stable.
As a precautionary measure due to icy roads, Port Houston's terminals were closed for the time being. The United Nations trade body has issued a warning about the escalating assaults on ships in the Red Sea, exacerbating challenges for shipping routes already affected by conflicts and climate change. Additionally, the cold weather has also contributed to disruptions in the supply of materials.
Despite the challenges posed by weather-related disruptions, the demand for Caustic Potash in the US remains resilient, supported by the steady performance of the downstream industries. The current market conditions suggest that stakeholders in the Caustic Potash industry monitor supply chain disruptions closely while capitalizing on the steady price trend to maintain a competitive edge in the market.
APAC
The Caustic Potash market in the APAC region experienced fluctuations during the first quarter of 2024 due to various factors. These included a decline in new orders both domestically and internationally, ample supply leading to extended delivery times, and weakening conditions in downstream industries. Production at the Daejeon factory was halted due to market contraction at the start of the year. The trading activities are subdued, with poor demand and low merchant confidence in future market conditions dampening enthusiasm. Despite sufficient material to meet domestic requirements, the market faces sluggishness due to low demand, muted regional orders, disrupted operations, and high-cost pressures. The latter quarter price slightly improved from previous conditions, The demand for Caustic Potash in the Korean and other Asian markets improved marginally, as there was moderate demand from the domestic market. The Red Sea conflicts impacted the trading activities and delayed in delivery of the products to the destination. New orders from domestic merchants were made only as needed.
Europe
In the first quarter of 2024, the Caustic Potash market in the European region experienced improved conditions compared to the previous quarter. Supply constraints and logistical disruptions that plagued the market in the first quarter of 2024 were gradually resolved, leading to a more stable supply situation. The demand for Caustic Potash remained moderate, with downstream manufacturers cautiously replenishing their inventory levels. Market participants in the Caustic Potash industry are raising apprehensions regarding the potential repercussions of Red Sea diversions, which could affect imports and lead to increased global ocean freight rates within the Eurozone. Midway through Q1, raw material deliveries were delayed, purchasing costs increased, and production capabilities were disrupted by the persistent effects of the Red Sea crisis, which presented difficult conditions for European manufacturers. Manufacturers responded to the rapid increase in new orders by raising their production in March. This price movement was primarily driven by a combination of factors, including a shortage of feedstock Potassium Chloride, which is a key raw material for Caustic Potash production.
For the Quarter Ending December 2023
North America
The Caustic Potash market in North America witnessed stable pricing trends during the fourth quarter of 2023 due to balanced market situations and moderate to high demand from downstream industries like agrochemical and cleaning. The top three factors that affected the market were the shortage of supplies, increasing input costs, and high levels of pre-procured inventories.
The shutdown of any plant was not reported during this quarter. In the USA, Caustic Potash prices remained stagnant throughout the quarter, with a slight incline of 0.5% in December due to the pause in purchasing sentiments. The demand for Caustic Potash in the downstream Agrochemical segment showed a marginal momentum due to the harvesting season and increased international offtakes.
The forecasted price trend for Caustic Potash in the USA was expected to decline in December 2023 due to destocking sentiments among market players and shortage of supplies. The price percentage change from the current quarter to the previous quarter was 7% depreciated, and the price percentage comparison of the first and second half of the quarter was also depreciated by 17%. The quarter ending price of Caustic Potash 45% Lye FOB Ohio in the USA was USD 636/MT.
Europe
The price of Caustic Potash fluctuated in the European market due to the limited amount of supply at the start of the Q4 2023. Firstly, there was a plant shutdown at a major production facility, resulting in decreased supply for feedstock and noted higher prices. Secondly, the market experienced moderate demand, as buyers were cautious due to economic slowness and destocking efforts towards the end of the year.
From the supply perspective, the Caustic Potash market players reported upward pressure from the high electricity prices, and bottlenecks in the inventory availability were reported mid of quarter to impact the final prices of the commodity. Towards the end of the quarter, manufacturers engaged in destocking the material, offering it at an affordable price pattern, facilitated by year-end discounts.
Overall, the Caustic Potash market in Europe faced challenges during the fourth quarter of 2023, including limited availability, supply disruptions, moderate demand, and price fluctuations. The latest price of Caustic Potash Flakes 90% FD Antwerp in Belgium for the current quarter is USD 874/MT.
APAC
In the APAC region, the Caustic Potash market in the fourth quarter of 2023 faced several challenges that impacted pricing. Firstly, the market experienced an oversupply of Caustic Potash, leading to a bearish market sentiment. This surplus supply was mainly due to moderate to high production levels across the region. Secondly, the demand for Caustic Potash in the APAC region was moderate to low, with marginal consumption in the downstream industries.
This resulted in a pause in purchasing sentiments and a decrease in demand. Finally, the market was also influenced by the weak regional market transactions, which led to competitive pressure and a decrease in prices. In South Korea, the Caustic Potash market saw significant changes in pricing during the fourth quarter of 2023. There was a high supply of Caustic Potash, leading to a bearish market situation.
The prices in South Korea decreased by approximately 5% compared to the previous quarter, reflecting the oversupply and competitive pressure in the market. Additionally, there was a 11% decrease in prices compared to the same quarter of the previous year, indicating a decline in market conditions. Overall, the Caustic Potash market in the APAC region faced challenges of oversupply, weak demand, and competitive pressure in the fourth quarter of 2023. The quarter ending price for Caustic Potash FOB Gwangyang in South Korea was USD 1194/MT.
For the Quarter Ending September 2023
North America
In the North American region, Caustic Potash prices saw an overall increase during the third quarter of 2023 due to consistent demand from downstream industries like agrochemicals, as well as rising international inquiries for the product. In the USA specifically, Caustic Potash prices started to rise at the end of August 2023, governed by the disruptions in the supply chain caused by high freight costs and low water levels in the Mississippi River. Hurricane Idalia also impacted Caustic Potash production in the USA, particularly along the Florida Gulf Coast. Manufacturers like Olin decided to reduce their output due to the slow revival in the demand from the downstream industry. Consequently, there was a shortage of Caustic Potash inventories to meet domestic market demand by the end of the quarter. Throughout the quarter, regional prices in the Caustic Potash market fluctuated in a narrow range, leading to sustainable profit margins for market participants in the USA. Additionally, the rising prices of energy inputs in the latter half of Q3 added to the pressure on production costs, further impacting Caustic Potash pricing dynamics in September 2023.
Asia
Caustic Potash prices remained relatively downward throughout the Asian market due to downstream market momentum delays. In China, the Caustic Potash prices decline resulted from the squeezed demand and surplus supplies in the middle of the quarter of 2023. Adequate stock availability on the supply side supported the final price trend across the region. Additionally, slowed-down orders in the regional market dampened the demand for the downstream agrochemical industry, and this negative trend is expected to persist in the H1 of Q4. However, the impact of a typhoon in the country disrupted operations, leading to constraints in domestic product supplies towards the end of the quarter. In response, market players decreased the prices during the final weeks of September 2023 to avoid piling up inventories, especially in the face of muted international offers. In summary, Caustic Potash prices in the Asian region exhibited limited fluctuations, with China experiencing a balanced market driven by modest downstream demand, while adequate supply supported the regional price dynamics of Caustic Potash during Q3 of the year.
Europe
During the third quarter of 2023 in Germany, Caustic Potash prices remained low due to decreased regional buying activity and limited interest from the downstream industries. In the middle of the quarter, a decline in the buying activity, coupled with high interest rates, caused a decrease in the consumption of Caustic Potash by the downstream industry in the first half of the quarter. On the supply side, the price trend of Caustic Potash was influenced by lower electricity costs in August 2023. Currently, reduced input pressure has boosted production activities across the German market, impacting the pricing dynamics of Caustic Potash. Furthermore, the European Central Bank (ECB) raised interest rates for the last time to mitigate inflationary pressures on the market towards the end of the quarter. This move, combined with extended summer vacations, led to a cautious approach from consumers who chose to engage in pre-purchasing activities for the following month. Despite increased volatility in energy prices, it is expected that core inflation will decrease, raising concerns about economic growth following the ECB's August 2023 rate hike.
South America
The Caustic Potash prices in the South American region followed an upward trend in the third quarter of 2023, governed by the increase in the demand from industries like agrochemicals, coupled with limited supplies from major exporting countries like China and South Korea. Specifically, in Brazil, Caustic Potash prices began to climb in August 2023 due to disruptions in the supply chain amidst the reduced production rates in China and expensive output costs. These supply constraints, in turn, led to higher import costs in response to reviving demand in the South American region. As a result, the shortage of availability of inventories to meet domestic orders by the end of the third quarter also contributed to the price surge of the commodity in this quarter. Additionally, downstream industries demonstrated a positive demand outlook, enabling market participants to maintain healthy profit margins in South America despite the region's slow-paced economic recovery. Furthermore, the increasing cost of energy in the latter part of Q3 added to the pressure on input costs in the regional market.
For the Quarter Ending June 2023
North America
Prices of Caustic Potash witnessed a decline at the beginning of the 2nd Quarter of 2023 due to low demand from the agrochemical and disinfectant industry of the United States. The market was observed to follow a bearish trend as inflation surged and new orders for exports fell from overseas, in addition to manufacturers opting for cost-cutting measures, which further diminished the input buying activities in the US. Supply remained moderate, even when production rates were reduced as exports fell and surplus stocks were available, compelling manufacturers to face high inventories. Demand remained low as the buying sentiments of producers were gloomy. In the middle of the 2nd quarter, prices witnessed no change and stabilization due to a modest increase in the downstream agrochemical and cleaning industry. Traders faced oversupplied market due to declination of sales to China and other North American importing countries. Supply and demand remained moderate due to drops in new orders, inflation, export orders from overseas, stagnant downstream, and a slow revival of the US economic condition towards the end of May. Towards the end of June, prices of Caustic Potash declined, due to insufficient rebound of the US economy and low consumption of surplus inventories by downstream industries, amid inflation. Overall, the prices of Caustic Potash experienced a depreciation of 7.4% in April, no change in May, and a further depreciation of 1% in June 2023.
APAC
Prices of Caustic Potash experienced a decline in the Asian market due to low demand from downstream agrochemical and cleaning industries, due to which traders experienced an oversupplied market as a result of low domestic sales and a prolonged fall in export. Supply remained moderate to high due to a rise in manufacturing activities, which led to improvements in supply chain and material availability, which further impacted the price of Caustic Potash, but demand remained low due to the contraction of the export orders from overseas and the Labour Day Holidays in China. Toward the middle of 2nd quarter, as the agrochemical sector improved, the price of caustic Potash declined marginally, which was further bolstered by sufficient domestic supplies, ease in energy prices and output, accompanied by a downturn in international and domestic purchasing activities, and low costs of production which led to rising inventory levels. Supply remained moderate as production costs were decreased due to lower energy prices which elevated inventory levels., whereas demand remained comparatively low despite showing signs of revival due to an elevation in the purchasing confidence for the downstream agrochemical industry amidst insufficient economic growth and low export international orders in May. Towards the beginning of June, prices again saw a decline due to unaltered domestic demand and stagnant operation rates. The market situation was observed to be bearish. Even though the supply was moderate, strikes by trade union workers had a negative impact on operational rates at ports. Demand remained low for June due to sluggish overseas offers amidst insufficient economic rebound. The price of caustic Potash saw a decline of 2.4% for April, 0.7% for May, and 5% for June. Towards the end of June, the listing price of the commodity was assessed to be USD 1320/MT FOB Gwangyang.
Europe
Prices of Caustic Potash surged marginally in the European market due to a slow increase in downstream demand from the agrochemicals and disinfectant industry in the line of low consumer purchasing confidence. Supply remained moderate to high due to a pullback in energy prices and constant production run rates, which led to an increase in the stock levels of the material. Demand remained slow as the sluggish economic revival resulted in a decrement in domestic inquiries. Towards May 2023, prices for caustic Potash further experienced a depreciation due to sluggish downstream demand and an oversupplied market. As the downstream sector entered a recession, new orders from the domestic market declined. Supply remained moderate to high due to the reduction of costs in energy. Meanwhile, demand was recorded to be low. Prices of Caustic Potash appreciated to a marginal of 0.7% in April but later declined by 10% in May. The listing price of Caustic Potash in the European market was assessed to be USD 910/MT Flakes 90% FD Antwerp (Belgium) in June 2023.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Caustic Potash market experienced a decline in prices, primarily due to reduced demand from downstream sectors such as agrochemical and disinfectant. The market also faced high inventory levels and sluggish operational activities, which have contributed to the pricing dynamics. In March 2023, the cargo was moved actively, and final commodity prices resulted from the supply chain stability and improved operational activities in the USA. The inventories were sufficient to cater to overseas inquiries, and meanwhile, domestic offtakes in the downstream sectors of the country remained silent for Caustic Potash. As a result, Caustic Potash prices decreased by about 3% in the first quarter of 2023. ChemAnalyst data will help to observe how the market evolves in the future and what factors will influence its growth or contraction.
APAC
The modest rate of increase in new orders in the Asian market at the termination of the quarter ending March 2023 caused mixed sentiments in the Caustic Potash market. The overall price trend of Caustic Potash prices showed a downward trajectory as a result of reduced inflationary pressure after the fading impact of COVID market-related disruptions and progressively rising production rates in the Chinese market. In March 2023, the final Caustic Potash prices in the APAC region have been influenced by the rebounding demand in the downstream agrochemical sector due to seasonal consumption in the regional market. Meanwhile, the persistent economic slowdown in the Asian market also contributed to the Caustic Potash price momentum in the first Quarter of 2023.
Europe
The Caustic Potash market in Europe has been affected by a variety of factors, including uncertainties in the market, inflationary pressures leading to tighter consumer budgets, and a slowdown in the European economy. These factors have contributed to a nearly 2% decline in Caustic Potash prices in the first quarter of 2023. Moreover, the decline in the Caustic Potash prices, caused by the muted offers from the downstream agrochemical and cleaning sector, amidst minimal confidence in transactional activity in the domestic market and postponed overseas purchase orders. Conclusively, the Caustic Potash market in Europe faced significant challenges in the first quarter of 2023, and the price of Caustic Potash for flakes' 90% grade was assessed at USD 1215/MT FOB Hamburg (Germany).
For the Quarter Ending December 2022
North America
The Caustic Potash prices were falling during the fourth quarter of 2022 in North America. The muted downstream demand from the agrochemical and pharmaceutical industry and market uncertainties led to the declining price trajectory for the product. The rising recession and dull downstream sectors lowered consumer confidence in the US market for the commodity. However, traders remained cautious about the amount of supply expansion as production capacity started to rebound in the second half of October 2022, impacting the prices. Therefore, the price of Caustic Potash flake 90% was quoted at USD 1244/MT FOB Philadelphia (USA) in December 2022.
APAC
The Caustic Potash market witnessed an overall bearish sentiment in Q4 of 2022. The fall in the domestic offers from the downstream agrochemical and pharmaceutical industries amid the escalating market uncertainties affected the price movement of Caustic Potash in South Korea. The wait-and-see attitude amongst the consumers dampened the commodity offtakes in the regional market. The cheaper imports and consistent production activities in the region have also led to further negotiations in the Caustic Potash costs in the market during this quarter. The price of Caustic Potash was quoted at USD 1336/MT FOB Gwangyang (South Korea) in December 2022.
Europe
The Caustic Potash price showed a downward trend in the Q4 of 2022, backed by the ample availability of stocks and lower downstream demand in the region. The muted downstream inquiries and high upstream energy prices amidst the looming energy crisis have led to November and October force majeure in Germany and caused input pressure on the caustic potash production in this Quarter. In addition, rising inflation in the region and curtailed Russian energy supplies compelled the manufacturers to limit production in the region and make offtakes at lower profit margins to avoid stockpiling of inventories and to attain consumer confidence in the regional market in the quarter ending December 2022. The prices of Caustic Potash flake 90% were assessed at USD 1244/MT FOB Hamburg (Germany).
For the Quarter Ending September 2022
North America
The market for Caustic Potash showcased a stable trajectory in North America by the end of September 2022. The USA's Caustic Potash prices dipped, backed by the unchanged downstream demand and persistent drop in the freight charges. Moreover, the strong US dollar, escalation in energy values, and surging inflation significantly impacted the price movement of Caustic Potash in the USA. As a ripple effect, the high inflation rate in the USA increased the product's input costs in this Quarter. Furthermore, the declaration of Shutdown in the primary Chlor Alkali producing chemical plant Olin at the end of this year in Texas resulted in solid consumer buying sentiments in the region. Thus, the price of Caustic Potash flakes was assessed at USD 1329/tonne FOB Philadelphia (USA) during September 2022.
APAC
The South Korean Caustic Potash market showed an upward trend in Q3 of 2022, owing to the surge in the domestic offers from the downstream agriculture segment amidst Chuseok Festival in South Korea. The Caustic Potash pricing dynamics were affected by the several production cuts in the APAC region due to the rising COVID-19 cases. As a ripple effect, Insufficient availability of inventories conclusively elevated the commodity prices in Asia. Meanwhile, the significant rise in the energy values and high inflation rate in the region also led to a change in the price movement of Caustic Potash in this Quarter. The inflation resulted in the depreciation of the Chinese Yuan, and South Korea won against the US dollar, impacting the input cost of Caustic Potash. Thus, the price of Caustic Potash was quoted at USD 1438/ton FOB Gwangyang (South Korea) in September 2022.
Europe
Caustic Potash led to upward price movement in the European market for Q3 2022 due to a rise in the downstream demand. The high upstream energy values and persisting inflationary pressure significantly escalated the production costs for the commodity in the European region. A cut in the Russian supplies of Natural gas and a fall in the Rhine River levels amidst the hot season lifted the price momentum for the product in this Quarter. European energy crunch and shortage of upstream energy supplies have led to a substantial rise of the Caustic Potash costs in the Quarter ending September 2022. Thus, the price of Caustic Potash was quoted at USD 1393/ton FOB Hamburg (Germany), with a month-on-month increase of 1.2% in September.
For the Quarter Ending June 2022
North America
In North America, the Caustic Potash prices fluctuated throughout the Q2 of 2022, backed by mixed market sentiments. In the first half of Q2, the prices decreased due to a decrease in demand from the downstream industries. High inventories are present in the market, leading to a decrease in price, and ample stock is available to feed the consumer's needs. Moreover, in the second half of Q2, the prices were upward in the second month of the quarter due to limited stock and high consumption from the consumer's end. While in the second month, the prices were lowered again due to high inventories of raw materials, Potassium Chloride in the market, and the input cost also declined.
Asia Pacific
In Asia-Pacific Region, the Caustic Potash prices fluctuated throughout Q2 2022, owing to mixed market sentiments. In the first half of Q2, the prices declined in the Chinese market due to high inventories. The demand from the end-use industries was also stable, and the product availability lowered the market pressure for the product. Moreover, in the second half of Q2, the prices increased in India in the second month due to demand from the detergents and soap industries. In addition, in the month of the quarter, the prices were lowered in the domestic markets of India due to the surplus availability of the product.
Europe
In Europe, the price of Caustic Potash fluctuated throughout the Q2 of 2022 due to the unpredictable market dynamics. In the first half of Q2, the prices were increased in the first month due to high demand from the end-use industries, including detergents and fertilizers. However, the prices were on a downward trajectory in the second month of the quarter, backed by a consistent increase in price, thus, decreasing the demand. Moreover, in the last month of the quarter, the prices increased due to the high input cost and the rose in the price of raw materials. Thus the price of the product remained fluctuated throughout the quarter.
For Quarter Ending March 2022
North America
Slow pick up in Caustic Potash demand led to decline in its prices in North America in March-end. Overall demand for Caustic Potash across the North American region remained low during Q1 2022. Whereas supply remained sufficient to satisfy the overall demand for Caustic Potash. Slackening demand and limited trade kept the Caustic Potash price below the desired levels in the region. Prior the month of February, Caustic Potash showcased a steep climb due to increase in active purchases of the product. Prices of Caustic Potash averaged at USD 928/MT FOB Ohio in USA.
Asia Pacific
Caustic Potash prices showcased firmness throughout Q1 in the Asian market as a result of halted production activities in several chemical producing areas in China as a result of implementation of Zero covid policy amidst Covid 19. Additionally, demand from agricultural segment also influenced the prices of Caustic Potash due to prevailing sowing season in the coming quarter in China. Existing manufacturers were indulged in making profits and raised prices of Caustic Potash under bullish buying sentiments in the domestic market. Prices of Caustic Potash were assessed at USD 1240/MT FOB Xingang in China in the month of March.
Europe
European market of Caustic Potash witnessed an upsurge since the month of January due to supply disruption from Russia amidst geopolitical tension between Russia and Ukraine. Demand for Caustic Potash was observed high due to the approaching sowing season in Europe which led to the increment in its prices. Moreover, extended energy crisis amid the ongoing geopolitical conflict between Russia and Ukraine also consequently resulted in surged prices of Caustic Potash. Meanwhile, several planned maintenance outages in April in Europe also contributed to the surge in its prices. Prices of Caustic Potash were assessed at USD 1335/MT FOB Hamburg in Germany in the month of March.
For the Quarter Ending December 2021
North America
Feeble demand for Caustic Potash in Q4, kept its prices in a stable to narrow range in North America. With holiday season around the corner buyers interest fairly dipped in the last two months. Demand for Caustic Potash further drifted following the peak of the winter season as end use industries like dyes and cosmetics already purchased enough cargoes in the beginning of the quarter. Q4 prices for Caustic Potash remained dull resulting from lopsided demand and supply fundamentals. Caustic Potash Flakes prices tumbled down to USD 1142 per MT FOB Philadelphia in December. As Caustic Potash forms a key agent of de-icing, its prices are likely to witness a significant surge in January.
Asia
Caustic Potash prices tumbled down in Asia after reaching record high in the previous quarter. In India, Caustic Potash market turned bullish under festive season which bolstered this steep uprise in India. The trend has now reversed following the decline in demand post festive season. Caustic Potash prices in December continued to trace downward trajectory with supply outstripping the demand. Traders remained stressed over their inventory levels and kept allowing heavy negotiations to promote the selling of existing stocks before year end. Fears of Omicron virus in India gradually sidelined purchases from downstream buyers as they were heard procuring cargoes only on the need basis. As operating rates of Chlor Alkali plants have been optimum in India, prices of the products have showcased consistent drop due to the narrowed demand and supply gap in the domestic market. Consequently, Caustic Potash prices in India were again assessed down by nearly 3% in the first two weeks of December.
Europe
Caustic Potash prices in Europe remained firm throughout the quarter following favorable demand and limited product availability. Demand for Caustic Potash remained firm from detergent and pharmaceutical industry in the quarter ending December. Extended energy crises in Europe added cost pressure upon manufacturers, compelling them to transfer it upon downstream buyers. As Caustic Potash is utilized as a key deicing agent in Europe, Vynova is all set to increase its Caustic Potash prices in January.
For the Quarter Ending September 2021
North America
The market outlook of Caustic Potash showcased an upward trajectory in the third quarter of 2021 across the North American region backed by the firm demand from the downstream sectors. The domestic market of Caustic Potash was somewhat tight in the first half of 2021 as the major end user industries observed limited supply amid local producers trying to balance their inventories. China held the largest market share in terms of exports followed by Brazil and South Korea. China availed the material during the quarter however delays were observed due to weather conditions that packed the US gulf coast. Demand for Caustic Potash increased from the downstream household and pharmaceutical sector. The price of Caustic Potash was last assessed at USD 790/MT FOB Texas.
Asia
The prices of Caustic Potash rose effectively across the Asia Pacific region in Q3 2021. In the Indian market, Caustic Potash prices kept on climbing during the month of August and eventually skyrocketed from USD 895/mt to USD 1032/mt from July to September. Recent sanctions on Belarus for potash exports severely affected the global Caustic Potash prices. In addition, imports from South Korea and China were also affected due to high freight costs amid improving demand from their domestic markets. Moreover, taking advantage of rise in average production cost around the world, domestic manufacturers also increased their offers to improve their margin during the third quarter.
Europe
In Q3, easing covid-19 restrictions led to significant rebound in industrial activities, especially glass manufacturing segment supported by other downstream segments including food, beverage, pharmaceutical and personal care. Traders revealed that apart from domestic prices, import cost was also rising due to global freight congestion, that provided domestic manufacturers an opportunity to improve their profitability. The prices of Soda Ash in Germany reached at USD per MT in the 3rd week of August.
For the Quarter Ending June 2021
North America
North American Caustic Potash market witnessed stable demand from downstream dye, pharma and agrochemicals sectors. Ample stock availability in USA, despite of disrupted production activities in the last quarter, maintained the price balance in Q2 2021. Meanwhile, the demand from pharma and consumer goods segment remained firm throughout the quarter. Therefore, no major fluctuation in the prices of Caustic Potash was observed during these three months, and prices fluctuated between USD 780/MT-USD 790/MT in the quarter ending June 2021.
Asia
Weak demand from downstream sectors in the month of May in India, pushed down the prices of Caustic Potash in the country. Rapid spread of contagion decreased the overall demand of Caustic Potash in India, as the implementation of lockdown by several states tumbled the market momentum during this quarter, especially in May. This condition later improved in June and prices rebounded and reached USD 817/MT in India. While in China, ample inventory levels induced a decline in prices till mid-April, which later traced an upward trajectory with improved offtakes from downstream segments like pharma and agrochemicals.
Europe
Under the firm demand outlook from downstream agrochemicals segment, prices of Caustic Potash remained strong throughout the quarter. Belarus, a major producer kept exporting a decent amount of Potash in North America and regional market, which later faced sanctions by European and North American government during mid-June, over some political issues. However, these sanctions have not impacted the market till now, but it is expected that can cause a shortage of granular potash across these two regions.
For the Quarter Ending March 2021
North America
The demand for Caustic Potash across the region remained low during Q1 2021, although the supply remained sufficient enough to satisfy the overall demand. Demand for Caustic Potash majorly comes from dye, pharma and liquid fertilisers, and all these sectors were running on lower capacities due to deterred production due to freeze fall out in mid-February. Slackening demand and limited trade kept the Caustic Potash prices below desired levels in the region. Caustic Potash prices fell by USD 25/MT after February and settled down at USD 770/MT in March end.
Asia
The Asian market witnessed mixed sentiments across different countries, while China faced strong demand amid insufficient supply, India faced comparably lower demand throughout the quarter. Hence the price trend varied from county to country. In India, Caustic Potash prices followed a downtrend with prices ending up at USD 693.5/MT during March after rolling down by USD 53.4/MT from January. With the onset of seasonal rise in demand patterns in April and better economic returns for potassium specialties, it is expected that KOH prices will gather upward momentum in the April. The Chinese Caustic Potash offers are still below desired levels because of overall dullness in the market sentiments and limited offtakes of the product from the downstream sectors. Caustic Potash Ex-Works Shandong prices slipped to USD 820-825 per MT from USD 860 per MT offers assessed in the last week of March.
Europe
Europe had witnessed mild to low demand from downstream sectors like fertiliser and pharma, although the availability remained low as the transportation activity halted due to weather conditions across some regions, which supported the prices marginally. Also trading activities across Asia and Europe also remained in a narrow range due to congestion across prime trade routes, high freight cost and Lack of availability of containers also affected the price of Caustic Potash across the region.
For the Quarter Ending December 2020
North America
The supply pressured to remain tight during the fourth quarter as the major end user industries observed the oversupply amid the producers tried to balance their Inventories. Olin Chlor Alkali product division (Mexico) imported the largest consignment of 1,515 MT with an approx. price of USD 450/T from U.S. the average prices in Mexican markets were remained around USD 670/T throughout the quarter. China covered the largest market share in term of exports followed by Brazil and South Korea.
Asia-Pacific (APAC)
The supply was majorly affected in Q4 2020 as the Caustic Potash market stood severely hit throughout the second half of FY 2020. A sudden slump in demand for Caustic Potash observed since the onset of COVID-19 pandemic with suppliers trying to balance their inventories amidst domestic supply outstripping demand. In India prices observed enormous fall around USD 70/MT in prices of Caustic Potash in fourth quarter, while maintaining an average of USD 859/ton, due to slow spot demand as the producers expressed concerns as consumers were purchasing in small volumes and inventories level are high.
