Potassium hydroxide price fluctuations and forecasts

Potassium hydroxide price fluctuations and forecasts

Recent trends

According to news on February 25, the market price of potassium hydroxide remained stable today, USD930/MT FOB Tianjin port

Analysis of influencing factors

① Cost factors: Potassium chloride accounts for 50%-70% of the manufacturing cost of potassium hydroxide, and electricity consumption, steam consumption, labor, packaging, etc. are relatively stable. The recent market price of potassium chloride has continued to rise, which theoretically has a certain support effect on the price of potassium hydroxide.

② Supply factors: Due to the reduction in demand from downstream enterprises, potassium hydroxide enterprises have timely lowered their production loads, but at the same time, new potassium hydroxide enterprises have been put into production, and the overall supply has increased slightly, with weekly output of about 25,500 tons, a month-on-month increase of about 0.9%. The supply side has a certain suppression on price increases.

③Demand factors: The overall demand of downstream manufacturers has gradually increased, mainly based on rigid demand purchases, which to a certain extent supports prices, but the magnitude and sustainability of demand growth remain to be observed. If demand continues to increase steadily, it may drive prices up. If demand growth is less than expected, the price increase will be insufficient.

Market Forecast

Based on the recent raw material price trends and market supply and demand, it is expected that the potassium hydroxide market price will remain stable in the near future, and there is still a possibility of a slight increase. However, it is still necessary to pay close attention to the price trend of potassium chloride on the raw material side, the operation of potassium hydroxide enterprises, and changes in demand in downstream industries. If the price of potassium chloride continues to rise sharply, or downstream demand grows beyond expectations, it may drive up the price of potassium hydroxide; if supply continues to increase or demand is lower than expected, the price may face downward pressure.