SunSirs: Supply Was Insufficient, Potassium Sulfate Market Continued to Be Positive

　　Price trend

　　According to data from SunSirs, the domestic potassium sulfate market continued its positive trend in early July. As of July 15, the average price of samples of potassium sulfate in China was 4,300 RMB/ton, a 5.31% increase from the monthly average price and a 60.75% increase over the same period last year.

　　Analysis review

　　At present, the domestic potassium sulfate market has experienced a mid-to-long-term positive market. The increase in the previous month was particularly prominent, and the spot ex-factory price of enterprises increased significantly. At present, the domestic potash fertilizer market is still slightly higher in July, and the supply side continues to be tight.

　　In terms of potassium chloride, recent transactions have not been good, but the volume of cargo arrivals at the port is relatively small, and the output of domestic potassium chloride fertilizer has declined. The overall inventory of potassium chloride is low, and the supply is also in short supply, which has a cost support effect on processing potassium sulfate enterprises.

　　In terms of imports, in the first half of this month, large-scale traders imported a small amount of imports, but their preference for reluctance to sell has not improved the market supply. The multiple positives in the early stage are still supporting the domestic spot price of potassium sulfate, but the downstream conflicts with high-priced sources of supply, which affects the momentum of trading, and the market growth rate is narrowing. Even so, it is difficult to find low-priced sources for in-market offers, and it has been heard that the in-market inquiry prices are significantly higher than the ex-factory prices.

　　Market outlook

　　The potassium sulfate analyst of SunSirs believes that the domestic potash fertilizer market trended positively in the first half of July, the price of potassium chloride was firm, and the support for domestic potassium sulfate from cost side was acceptable. While supported by the cost side, the shortage of potash fertilizer market supplies also increased the spot price of potassium sulfate. Traders were reluctant to sell, and companies actively raised prices. In terms of demand, terminal companies are still inadequate to follow up, and the fluency of high-priced goods shipments is not good. The pressure on the cost side does not match the consumption of end users, and it is expected that the domestic potassium sulfate price may fall into a deadlock in the near future.