What drives potassium sulphate price trends in China's current market?

What drives potassium sulphate price trends in China's current market?
Potassium sulphate prices are currently firm but with limited upside. The 50% powder resource-based product is quoted around 3800 yuan per tonne at destination, with tight supply and strong trader positions. Key cost drivers include sulphur, sulphuric acid, and potassium chloride—all influenced by Middle East geopolitics. However, sulphate potash demand is less elastic than muriate of potash because it targets chlorine-sensitive cash crops like tobacco, grapes, and tea. Domestic capacity is sufficient, which caps price rallies. The June market showed typical off-season weakness but prices did not collapse, supported by firm international benchmarks. India's recent contract settlement at 383 USD/tonne CFR, 35 USD above China's earlier deal, signals a systematic upward shift in global potash pricing.