LONDON, November 17, 2017 —
In recent years, prices in key potassium sulphate markets have diverged on an unprecedented scale. Major additions of secondary capacity in China and Egypt, supply issues in Europe, and low potassium chloride prices have caused significant price variation between regional markets.
In the forthcoming Potassium Sulphates & Potassium Nitrate Market Outlook, CRU explores the unique supply, demand and pricing dynamics of the speciality potash market. Potassium sulphate (SOP) is the second most commonly used form of potassium fertilizer after potassium chloride (MOP).
SOP commands a price premium to MOP primarily due to the absence of chloride, to which some crops, including fruit and nuts, are sensitive. As a result, SOP demand is comparatively price inelastic-consumers are reluctant to switch to lower priced MOP when then price of SOP increases.
Since 2012, prices of MOP have fallen over 50%, due to intensifying supply competition and low crop prices. However, SOP prices have strongly outperformed those of MOP over the same period.
Since 2015, SOP prices, and the premia over MOP, have become increasingly variable across key markets. The charts show that until 2014, SOP prices rarely diverged by more than USD100 /t between regional markets. From 2015, significant supply and demand developments have driven major disparities in regional prices.
Read the full story: http://bit.ly/potassium-sulphate-price-divergence
Read more about CRU: http://bit.ly/About_CRU
CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.
Since our foundation in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China. CRU employs over 250 experts and has more than 10 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004.
When facing critical business decisions, you can rely on this first-hand knowledge to give you a complete view on a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.
CRU – big enough to deliver a high quality service, small enough to care about all of our customers.
Latest posts by Sarah Thompson (see all)
- Investor Alert: Kaplan Fox Announces Investigation Of Synergy Pharmaceuticals Inc. - February 24, 2018
- Democratic Charter Public School Parents and Supporters Rally at the California Democratic Party Convention in San Diego - February 24, 2018
- JUUL Labs Presents Findings From Two Studies at The Society for Research on Nicotine & Tobacco's 2018 Annual Meeting - February 24, 2018