Introduction to Potassium Sulfate Market
Potassium sulfate is a white, water-soluble solid, also known as sulfate of potash or dipotassium sulfate. It came into the spotlight in the 14th century, and later, in the 17th century, pharmaceutical chemists first prepared and utilized it for medicinal purposes. Minerals such as arcanite, kainite, sconite, langbeinite, polyhalite, aphthitalite, and leonite are used in the production of Potassium sulfate. Kainite, sconite, and langbeinite are commonly used minerals, while the others are relatively rare.
The production of Potassium sulfate involves the treatment of potassium chloride with sulfuric acid to produce potassium bisulfate. Subsequently, this potassium bisulfate undergoes a reaction with potassium chloride, resulting in the production of the ultimate product, Potassium sulfate, along with the formation of hydrochloric acid.
Potassium Sulfate Market Segmentation
Agriculture applications is the leading consumer of Potassium sulfate where it is used as fertilizer. Plant nutrition is commonly categorized into three essential nutrients: Nitrogen, Phosphorus, and Potassium, often referred to as NPK. Potassium-based fertilizers play a crucial role in promoting protein synthesis, facilitating enzyme reactions, regulating water flow in leaves, aiding in carbohydrate formation, and enhancing resistance to diseases. Potassium provides plants with vigor and vitality. While potassium chloride is the most widely used potassium fertilizer, Potassium sulfate is the preferred choice when the chloride content in potassium chloride is unsuitable or could potentially hinder plant growth. Furthermore, Potassium sulfate is preferred when additional sulfur is required to enhance protein synthesis in plants. Potassium sulfate is manufactured in fine particle sizes, allowing it to be applied as a foliar spray or directly onto the leaves of plants as a fertilizer.
Global Potassium Sulfate Demand Analysis, By Application - 2016-2032
More than 90% of potassium sulfate produce is used as fertilizer and the remaining is used in applications like drywall panels or gypsum board, animal feed, gun powder, cosmetics, food & Medicines and industrial applications. The addition of potassium sulfate in gypsum leads to a faster setting of gypsum and helps in getting harder gypsum panels. In the case of animal feed, potash mineral is used as lick blocks which helps prevent diseases. Lightning or flash at a gun muzzle after the firing of a shot acts as a disadvantage as it exposes the location of the person and creates hindrance in their sight. Hence potassium sulfate is added to gunpowder to reduce muzzle flash as it acts as a barrier between leftover propellant gases and oxygen in the air. In cosmetics, potassium sulfate is added to skin cream to add thickness or sticky properties to the product. The health benefit of potassium sulfate is better for plants than humans, hence direct consumption of potassium sulfate through food or medicine is very limited. However, the consumption of potassium sulfate is approved by FDA in limited quantities to avoid excess potash in the body.
Potassium sulfate is also used in small quantities for several industrial applications, some of them are as follows: Titanium oxide is widely used as a white pigment in paints & coating. In order to produce titanium oxide, titanium minerals are treated with iron sulfate, sulphuric acid and potassium sulfate. Similarly, potassium sulfate is also used to produce a boron flushing solution which has a common application in crude extraction. In chemical synthesis potassium sulfate is feedstock to produce potassium peroxodisulphate via electrolytic processes. Potassium peroxodisulphate is used to initiate polymerisations due to its excellent properties as an oxidant.
Potassium Sulfate Capacity
The global capacity for potassium sulfate is estimated to be around 6,000 kilo tons with most producers using the Mannheim potassium sulfate production process. Countries like China, Chile, Russia, Canada and Sweden are major potassium sulfate suppliers in the world. The potassium sulfate supply is concentrated mainly in Asia Pacific on the back of strong demand of fertilizers in the region. China accounts for lion’s share in global potassium sulfate market.
Potassium Sulfate Trade
In 2021, China emerged as the primary global exporter of Potassium sulfate, with total exports reaching 222 kilotons. Other notable exporting countries included Sweden, Egypt, Russia, and Saudi Arabia. Within North America, the United States stood as a net importer of Potassium sulfate, with net imports amounting to 86 kilotons, followed by Mexico. Conversely, Canada acted as a net exporter, with net exports reaching 18 kilotons. In Western Europe, Sweden held the position of the largest exporter, with net exports amounting to 167 kilotons in 2021. On the other hand, countries such as France, the Netherlands, and Italy were the prominent importers in terms of volume, collectively importing 264 kilotons. Similarly, in Central and Eastern Europe, Russia emerged as the leading exporter, while countries such as Turkey, Greece, and Poland were the top importers. In the Asia Pacific region, China maintained a monopoly as the major supplier of Potassium sulfate, while countries including Pakistan, Japan, Australia, and India served as significant importers.
Potassium Sulfate Average Trade Prices - 2018-2021
Potassium Sulfate Price
The global potassium sulfate prices are influenced by various factors, including raw material availability, supply and demand dynamics, market competition and production capacities. Fluctuations in these factors can impact the average global prices for potassium sulfate. The average global prices for potassium sulfate have been around $450- $500/ton in 2021. The prices have steadily increased since 2018. After short fall in average price of during 2020 the prices have sharply grown by 13%.
Potassium sulfate prices in the Americas are higher than the global average. For USA the average price for potassium sulfate in 2018 were $529/ton and in 2021 the average was $615/ton. The prices of potassium sulphate in the USA are the highest in the world. Whereas the prices of Russia are the lowest with average prices in 2021 being $351/ton. Countries like Brazil, Mexico and Canada follow a similar trend to the USA with sight lower values. The average prices of potassium sulphate in Asia were $397 /ton which went up to $429/ton in 2021. In 2021 the potassium sulphate average price in China were $423/ton.
Key Players in Potassium Sulfate Market
Potassium sulfate market is fragmented between multiple players however few major Potassium Sulfate players are K+S Aktiengesellschaft, Sociedad Química y Minerade Chile (SQM), Sesoda Corporation, Rusal Plc, Compass Minerals, Evergrow Group, Cinis Fertilizer, Tessenderlo Group, Migao Corporation, Sdic Xinjiang Luobupo Potash Co. Ltd. and Archean Chemical Industries Pvt. Ltd.
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