Potassium Nitrate Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Potassium Nitrate in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Potassium Nitrate Price Trend for the Q1 of 2024

Asia

In accordance with global markets, potassium nitrate prices in Asian countries fluctuated due to various factors affecting both supply and demand dynamics. In the first quarter of 2024, a significant surge in potassium nitrate prices was initially spiked by uncertainty and concern among traders over subdued production activities amid the approaching agriculture season.

Potassium Nitrate Price Chart

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This spike was further attributed to the limited availability of overseas imports leading to supply chain disruptions and logistical challenges. China, a major producer and exporter, was further impacted by its robust fertilizer industry driven by domestic demand. India, on the other hand, a significant importer, was also supported by its agricultural sector. However, the oscillating economic parameters restricted the uptrend of potassium nitrate prices.

Europe

In the first quarter of 2024, the European countries witnessed notable fluctuations in potassium nitrate prices due to oscillating demand and increased efficiency of supply chains. Agricultural activities also slowed down seasonally, leading to decreased demand for potassium nitrate fertilizers. The farmers opted for alternative fertilizers like ammonium nitrate or urea, further dampening demand. The region also faced a surplus in potassium nitrate supply, influenced by increased imports from major producers and high inventories.

Despite the decline, the downstream market optimism remained bullish among the manufacturers, giving the inventories a further upside blow. However, towards the end of the quarter a slight reversal in the market dynamics was due to the improving agricultural outlook of the European countries.

North America

In North America, the prices of potassium nitrate improved by a slight margin as the downstream agriculture industries raised their appetite. Initially, the market growth was slow as the excessive inventories from previous quarters remained the concern of the traders and, therefore, prompted them to opt for destocking options by offering huge discounts on bulk purchases. However, the market activities started to improve during the middle of the quarter.

The rising interest of overseas industries amid the slowdown of exporting volumes from China also favored the rise in the potassium nitrate price trend in the first quarter. Also, the disruption and rerouting of maritime trade routes increased the expenditure on transportation, raising the overall production cost of potassium nitrate and favoring the rise in its price trend.

Analyst Insight

According to Procurement Resource, the price trend of Potassium Nitrate is expected to move forward as the market activities are likely to be fueled by the improving outlook of downstream industries and rising cost of feedstock salts of potassium in near quarters.

Potassium Nitrate Price Trend for the October - December of 2023

Asia

Since the industrial production of potassium nitrate is greatly dependent on its feedstock compounds sodium nitrate and potassium chloride, the variations and market dynamics of both these compounds are also reflected in the potassium nitrate market trend. The costs and availability of both these raw materials determine the upstream production outlook for potassium nitrate.

During the given time period of Q4’23, the potassium nitrate price index exhibited borderline optimism, especially for the Chinese market. The Indian market on the other hand was relatively low swinging. These market trend were majorly directed by the market demands from the downstream fertilizer and explosives sectors. Overall, varying market trend were witnessed.

Europe

The European potassium nitrate market was observed to be showcasing borderline stability during the said period of the fourth quarter of 2023. The region’s fertilizer market has been struggling since the Russia and Ukraine war, as both these countries accounted for a majority of the fertilizer exports. However, during the given timeline the supply situation improved a lot and overtook the market demands resulting in a few upward peaks as well in the price graph.

North America

The North American potassium nitrate market closely mimicked its European counterpart during the said period. Belarus’s fertilizer exports negatively affected the domestic prices for most of the previous quarters. However, the supply and demand curve were largely found to be stable during this time. Overall, mixed market sentiments were observed.

Analyst Insight

According to Procurement Resource, the Potassium Nitrate market projections look positive for the coming months. With some reverse fluctuations, prices are anticipated to grow in the coming quarter.

Potassium Nitrate Price Trend for the July-September of 2023

Asia

The first half of the third quarter commenced with the decline in the potassium nitrate price trend. The market dynamics of potassium nitrate were adversely affected by the underperformance of the downstream industries and the sliding interest of the consumer sector amid the weak condition of the Asian economy. In addition to this, the interest of overseas industries in the potassium nitrate sector additionally failed to support the potassium nitrate price momentum. The agriculture and fertilizer sector, on the other hand, showcased signs of improvement that helped the potassium nitrate price graph in the later stage of the third quarter.

Europe

The contraction in the potassium nitrate price graph during the third quarter of 2023 was a consequence of limited procurement from the fertilizer sector during the initial phase. This reduced demand for potassium nitrate fell short in view of the excess influx of the product as, despite the weak sentiments of the market, rates of production rose gradually. However, as the quarter progressed, the downstream industries caught up with the speed of industrial development of the European countries, giving the potassium nitrate price trend a boost.

North America

The potassium nitrate price trend declined throughout the third quarter of 2023, with only minimal recovery during the end phase. The potassium nitrate market in North America suffered from an excess of inventories and a poor outlook on consumer confidence. Among the downstream industries, the agriculture and fertilizers sector experienced a significant shrink that, in turn, negatively affected potassium nitrate prices.

Analyst Insight

According to Procurement Resource, the price trend of Potassium Nitrate are estimated to continue their southward trend as the interest of downstream industries does not seem to improve in the upcoming months.

Potassium Nitrate Price Trend for the First Half of 2023

Asia

The water-soluble fertilizers sector is one of the major employers of potassium nitrate, and thus, its prices and growth trajectory are also dictated by it. In the first quarter, the domestic Asian market of potassium nitrate suffered from excess supply and low support from the downstream sector.

The feedstock cost also failed to push the price trend in a positive direction. This trend of decline in the prices continued in the second quarter, too, as the number of bulk purchases fell significantly, hampering the potassium nitrate price trend. The market suffered from lower export numbers, recession-like conditions, and low rainfall, which eventually led to a fall in the prices of potassium nitrate.

Europe

The low cost of natural gas, the effects of the US banking crisis, and frequent price cuts by traders due to limited offtakes by the downstream industries were the major causes of the decline in the price trend of potassium nitrate in the first quarter. In the second quarter, the prices kept moving southwards as this path was supported by the ongoing Russia-Ukraine crisis and global slowdown in the economy. Further, extreme level rainfall and poor weather conditions affected the agriculture sector negatively, leading to the decline in the price trend of potassium nitrate.

North America

The demand for potassium nitrate in the domestic and international industries fell significantly in the first two quarters of 2023, which was the most prominent cause of the decline in its prices. The consumers were reluctant to place bulk orders as the shadows of recession and rising rates of inflation loomed over the potassium nitrate market in North America. The economy of the region took a drastic turn after the failure of two major banks, which led to the contraction in manufacturing activities and the appetite of consumers, causing the price trend of potassium nitrate to move downwards.

Analyst Insight

According to Procurement Resource, the price trend of Potassium Nitrate is expected to decline in the upcoming quarters as the demand from the downstream sectors is negatively influenced by the weak performance of the global economy.

Procurement Resource provides latest prices of Potassium Nitrate. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.