Potassium Chloride Prices Remain High and Stable, Trading Activity Slows Down Before the Holiday

This week, potassium chloride prices remained high and consolidated. As of February 10, the benchmark price for potassium chloride (imported) on Business Society was 3,616.67 yuan per ton, unchanged from the beginning of the month. Imported potassium: The border trade price for 62% white potassium was quoted at 3,350–3,400 yuan per ton, while the port self-pickup price moved closer to 3,600 yuan per ton. The mainstream price for Lao 60% powder potassium ranged from 3,050 to 3,360 yuan per ton. Supply and Demand Dynamics: On the supply side, domestic potassium production was constrained due to declining ore quality and winter maintenance. Port inventories stood at approximately 2.49 million tons, remaining at low levels, though some supplies were allocated to specific destinations, limiting actual circulation. On the demand side, agricultural demand weakened as the Spring Festival approached, with compound fertilizer plants undergoing maintenance or reducing operating rates. The chemical sector maintained rigid demand, providing some support to the market. Market Sentiment and Transactions: Traders held back on sales, while downstream buyers adopted a wait-and-see approach, resulting in limited new order transactions. The market exhibited a state of "high prices but low volume." As the Spring Festival neared, market activity declined. However, prices remained largely stable due to tight supply and policy support aimed at ensuring supply and stabilizing prices. Outlook: In the short term, the tight supply-demand balance is expected to persist, with prices likely to remain high and consolidated. Attention should be paid to the pace of imported potassium arrivals, the release of national reserve supplies, and the recovery of agricultural demand after the Spring Festival. If supply increases or demand falls short of expectations, it could impact prices. Overall, against the backdrop of tight supply and seasonally weak demand, the potassium chloride market currently maintains high and stable prices. Future trends will depend on changes in supply and demand dynamics as well as policy guidance.