LONDON, November 17, 2017 /PRNewswire/ --
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
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