According to PriceWatch, In Q1 2025, Caustic Potash (Potassium Hydroxide) Flakes (90%) Industrial Grade – South Korea prices declined substantially to USD 750, down by -5.46% compared to Q4 2024. The foreign demand was not strong in the market, and many of the buyers had stocked enough in the previous quarter.
The South Korean suppliers also received increased competition from local suppliers offering lower prices. Despite strong domestic demand in industries like textiles and detergents, there was excess supply and very few new orders to drive prices down. Prices had to be cut to stay in the market, which was a sign of a weak sentiment for the quarter.Â
According to PriceWatch, In Q2 2025, the South Korean Caustic Potash Flakes (90%) Industrial Grade market began to recover as prices improved modestly to USD 753 per metric ton, rising +0.40% from Q1. Export demand from nations like India and Vietnam was small scale, but this contributed some strength to overall business activity. Domestic market demand was stable in water treatment and agricultural applications.
Since raw material and energy prices remained steady, vendors could keep their prices firm without any significant erosion of margins. Though buyers continued to purchase cautiously, the price increase evidenced initial indications of stabilization momentum. Even inventory levels also seemed better balanced than in previous quarters, since producers moderated production cautiously.
Certain players in the market believed that the worst of the price erosion period was behind them, and this prevented most sellers from offering deep discounts. Competitive pressures from nearby Asian markets also began to abate somewhat, allowing South Korean exporters to be more resistant. Moreover, ongoing geopolitical tensions particularly disruptions linked to the Iran-Israel conflict had a spillover effect on trade flows in the broader region. These tensions contributed to temporary diversions in sourcing preferences and logistics routes, indirectly benefiting South Korean suppliers as buyers looked to diversify their import base.
Although complete recovery was still far from reach, the tone of the market overall shifted away from sharply bearish to tentatively neutral. As long as demand doesn’t change and inquiries become solid, the region will be able to transition into a more stable period of prices in the second half of the year.
According to PriceWatch, In Q1 2024, prices of Caustic Potash (Potassium Hydroxide) Flakes (90%) Industrial Grade – South Korea fell drastically to USD 810.67 per metric ton from a notable -8.91% decrease compared to Q4 2023. The fall was primarily caused by post-year-end inventory overhang as well as lacklustre buying interest from both domestic and foreign markets.
The buyers from Asia and the Middle East remained on the sidelines after the restocking in the previous quarter. Despite this, producers maintained regular production, and this led to increased availability. Combined with high logistics costs and weak export competitiveness, this created a very strained situation that forced prices down hard.Â
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According to PriceWatch, In Q2 2024, The downtrend continued for Caustic Potash (Potassium Hydroxide) Flakes (90%) Industrial Grade – South Korea with prices dropping to USD 797, down -1.69% from Q1. Languid export orders and risk-averse local buying resulted in subdued trading activity. Bulk buying was avoided by most buyers on the belief that prices would go down further.
Production stayed level from the sellers’ perspective, but muted demand meant that the market continued to be oversupplied. Relationship maintenance with core customers held priority over volume expansion, keeping prices in closely held, gradual decline.Â
According to PriceWatch, In Q3 2024, the Caustic Potash (Potassium Hydroxide) Flakes (90%) Industrial Grade – South Korea market approached price resistance at USD 793.33, only -0.46% lower than Q2. Though demand remained weak, vendors were maintaining their discipline, and deep discounting was a decreasing occurrence.
Exporters shipped moderate volumes to South Asia and the Middle East, serving to reduce some of the inventory build-up. Domestic consumption, particularly industrial and chemical, continued at an even rate, stemming further steep declines.Â
According to PriceWatch, In Q4 2024, The South Korean industrial grade Caustic Potash (Potassium Hydroxide) Flakes (90%) market plateaued, and prices were unchanged from Q3. The sellers did not want to reduce prices any further with the support of firm local procurement and the gentle recovery of export demand, particularly for year-end restocking.
Pressure on inventories began to ease, and an improved supply-demand condition contained further corrections. Logistics and freight return to normal, granting producers some leeway to correct costs and maintain stable quotes in local and export markets.Â
According to PriceWatch, In Q1 2025, Ahmedabad market prices fell to USD 899.47 per metric ton from -4.53% in Q4 2024. Domestic buying fell as traders waited and watched in the hope of further falls. The sellers reacted by providing prices competitively, particularly as stocks remained on the higher side.
Usage by industry remained in customary industry sectors but was inadequate to sustain the market. Bearish mood was triggered by the absence of high export orders and price action by other sellers. Market players focused on liquidating old stock than searching for new orders.Â
According to PriceWatch, In Q2 2025, Prices of Ahmedabad Caustic Potash Flakes (90%) Industrial Grade fell to USD 857.77 per metric ton, -4.64% down from the previous quarter. Purchasing was in less interest since most of the buyers already had adequate inventory with them for previous quarters. This lukewarm purchasing along with regular high availability affected market sentiment.
Sellers also felt the sting of falling prices due to increased competition from the surrounding regions. Although manufacturers attempted to reduce output, it could not offset general weakness, and there were steep discounts to continue selling.
Despite efforts to stabilize the market, the over-supply condition resulted in intensified price cutting among distributors. A few traders indicated postponing new purchases in the expectation of further declines, further hampering market recovery. Transport charges remained in check but did not help enough to counteract the downward pressure on prices.
Additionally, small-end buyers concentrated on depleting existing inventory instead of ordering new. Larger buyers also delayed their purchasing cycles, contributing to the extended softness in demand. The Ahmedabad market remained in a low-momentum cycle, with sellers still under pressure to push material at negotiated prices.Â
According to PriceWatch, In Q1 2024, Ahmedabad Caustic Potash prices saw USD 948 per metric ton, -2.63% lower than in Q4 2023. The quarter started with overhang from the previous quarter, and big sector buying interest remained constricted. Producers kept production levels steady at the same levels, but the absence of active buying kept prices in check. Without any support from the external markets and soft domestic momentum, sellers lowered offers to stay in the mix. Bearish sentiment existed throughout the quarter with market direction being of concern for traders.Â
According to PriceWatch, In Q2 2024, rates dropped to USD 941.5 per metric ton, a decline of -0.68% from Q1. Local and export customers continued purchasing cautiously and market activity was poor. All of them were looking for further cuts, so they did not buy in size. Despite maintaining the level of production, demand levels did not demonstrate any sign of real increase.”. Traders focused on relationship contracts to keep levels of flow, and subpar procurement continued to stress levels of price during the quarter.Â
According to PriceWatch, In Q3 2024, the market recorded a soft upturn with prices lifting to USD 962.9 per metric ton from Q2, +2.27%. This increase was triggered by moderate restocking in addition to temporary equilibrium of demand and supply. Sellers were better dispositioned and had started resisting price falls, giving them less room for give-and-take. Internal business was even, helping take some overhang stock. With no cost inflation or material disruptions, manufacturers maintained offers firm and sentiment modestly optimistic for the quarter.Â
According to PriceWatch, In Q4 2024, Caustic Potash prices fell to USD 942 per metric ton, -2.15% down from Q3. Following the short respite in Q4, the market eased out once again with purchasers holding out for end-of-year offers. Purchase reduced and inventories started accruing. Domestic producers lowered prices to dispose of material before fiscal turn-over. Export demand was also weak, and domestic buyers were not willing to take up higher prices. Though level of production quantities, sentiment in all directions relaxed on account of weak activity and inventory in hand offering pressure.Â
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Potassium Hydroxide (KOH), also known as caustic potash, is a white, hygroscopic, and highly water-soluble solid. It is a strong alkali commonly supplied in the form of flakes, pellets, or aqueous solutions. Potassium hydroxide is primarily used in the production of potassium carbonate, fertilizers, biodiesel, soaps, detergents, and various potassium-based chemicals. It is also utilized in pH control, water treatment, and as an electrolyte in alkaline batteries. KOH is typically produced via the electrolysis of potassium chloride (KCl) solution.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
S.NO.  | Parameters | Flake Specifications  |  |
1Â | KOH (Total alkali as KOH) %Â | 90.8Â | Â |
2Â | K2CO3 %Â | 0.2Â | Â |
3Â | KCl%Â | 0.006Â | Â |
4 | Fe ppm  | 0.2 |  |
5Â | NaOH %Â | 0.7Â | Â |
6 | Ni ppm | 0.2 |  |
7 | Appearance  | White Flakes |  |
Applications
Potassium Hydroxide (KOH) is a strong, highly versatile alkali widely used in industries such as chemicals, agriculture, and manufacturing. It plays a key role in producing liquid soaps, detergents, and potassium-based fertilizers. KOH is also essential in chemical synthesis, pH regulation, water treatment, and biodiesel production. Additionally, it serves as an electrolyte in alkaline batteries. Its strong reactivity makes it valuable across various applications, though it must be handled with care due to its corrosive nature.Â
Russia-Ukraine Conflict (2022–Present): The war triggered a surge in natural gas and electricity prices, which are critical to the energy-intensive electrolysis process used to manufacture Potassium Hydroxide (KOH). This significantly raised production costs, particularly in Europe, where some facilities were forced to reduce output or shut down. As a result, regional supply tightened, and prices climbed sharply.Â
China’s Environmental Regulations (2017–Present): China’s enforcement of stricter environmental policies led to the closure or retrofitting of non-compliant chemical plants, including KOH facilities and upstream potassium chloride (KCl) suppliers. These regulatory measures reduced both domestic and export output, contributing to global KOH supply shortages and upward price pressure.Â
COVID-19 Pandemic (2020): At the start of the pandemic, global demand for KOH declined due to slowdowns in sectors like agriculture, batteries, and general chemicals. However, this was followed by a sharp rebound in demand for disinfectants, soaps, and cleaning agents—key end uses of KOH. Combined with freight disruptions and supply chain delays, this led to notable price volatility during the recovery phase.Â
Sanctions on Belarus (2021–2022):Â
Belarus is a key global supplier of potassium chloride (KCl)—the main raw material for KOH. Western sanctions on Belarus due to political and human rights concerns severely restricted its potash exports. This created a global supply bottleneck for KCl, especially affecting countries with little domestic potash production, driving up input costs and therefore KOH prices.Â
U.S.-China Trade Tensions (2018–2020):Â
Trade disputes between the U.S. and China led to tariffs and regulatory barriers on various chemical products. China is a significant exporter of KOH and potassium salts. As trade routes became more restricted and uncertain, importers faced price hikes due to sourcing challenges and increased transportation risks.Â
These events illustrate the Potassium Hydroxide market’s sensitivity to global disruptions, highlighting the importance of closely monitoring supply chain dynamics and geopolitical factors for better market forecasting.Â
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In addition, PriceWatch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With PriceWatch, you gain a competitive edge in understanding all the elements that influence caustic potash (potassium hydroxide) prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely caustic potash (potassium hydroxide) market data.
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Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Potassium Hydroxide (KOH), also known as caustic potash, is a white, hygroscopic, and highly water-soluble solid. It is a strong alkali commonly supplied in the form of flakes, pellets, or aqueous solutions. Potassium hydroxide is primarily used in the production of potassium carbonate, fertilizers, biodiesel, soaps, detergents, and various potassium-based chemicals. It is also utilized in pH control, water treatment, and as an electrolyte in alkaline batteries. KOH is typically produced via the electrolysis of potassium chloride (KCl) solution.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
S.NO.  | Parameters | Flake Specifications  |  |
1Â | KOH (Total alkali as KOH) %Â | 90.8Â | Â |
2Â | K2CO3 %Â | 0.2Â | Â |
3Â | KCl%Â | 0.006Â | Â |
4 | Fe ppm  | 0.2 |  |
5Â | NaOH %Â | 0.7Â | Â |
6 | Ni ppm | 0.2 |  |
7 | Appearance  | White Flakes |  |
Applications
Potassium Hydroxide (KOH) is a strong, highly versatile alkali widely used in industries such as chemicals, agriculture, and manufacturing. It plays a key role in producing liquid soaps, detergents, and potassium-based fertilizers. KOH is also essential in chemical synthesis, pH regulation, water treatment, and biodiesel production. Additionally, it serves as an electrolyte in alkaline batteries. Its strong reactivity makes it valuable across various applications, though it must be handled with care due to its corrosive nature.Â
Potassium Hydroxide prices are influenced by several key factors, including the cost of raw materials—particularly potassium chloride (KCl), which is used in the electrolytic production of KOH. Energy prices, especially electricity (a major input in electrolysis), significantly impact production costs. Demand from end-use industries such as agriculture (for fertilizers), chemical manufacturing, and the soap and detergent sector also affects pricing. Additionally, supply chain disruptions, international trade policies, environmental regulations, and currency exchange fluctuations play a critical role in global price dynamics.
The availability of Potassium Hydroxide directly influences pricing. Limited availability due to production outages, maintenance shutdowns, or regulatory constraints can tighten supply and push prices higher. Conversely, when global production capacity increases or supply chains stabilize, prices may ease. Logistics and shipping conditions—especially for exports, also affect availability in specific regions. Continuous monitoring of production trends and supplier conditions is essential for anticipating price movements.
Regional Potassium Hydroxide pricing can vary due to differences in energy costs, access to raw materials like potassium chloride, local demand, and infrastructure efficiency. For example, countries with large KCl reserves and domestic KOH production facilities (such as China and parts of Europe) may offer more competitive prices. In contrast, regions heavily reliant on imports may face higher landed costs due to freight, duties, and tariffs. Procurement professionals should assess regional supply dynamics, production hubs, and incoterms (like CIF or FOB) when forming sourcing strategies to ensure a cost-effective and reliable supply.
Environmental and regulatory factors play an increasing role in the sourcing and production of Potassium Hydroxide. The manufacturing process, particularly the electrolysis of potassium chloride, consumes significant energy and can have a notable environmental footprint depending on the electricity source. Regulatory bodies may impose environmental compliance standards related to emissions, waste disposal, and handling of hazardous chemicals. Suppliers in regions with strict environmental laws may face higher production costs, which can be reflected in pricing. Additionally, regulations around transportation and chemical storage (such as REACH in Europe or EPA regulations in the U.S.) can affect lead times and logistics planning. Procurement teams should assess supplier compliance with environmental standards and consider sustainability metrics when selecting vendors to align with corporate ESG goals.
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