potassium carbonate Pricing Assessment

• Russia-Ukraine Conflict (2022): The war impacted transportation and logistics, with restrictions on sea and rail transit, as well as a reduction in air cargo capacity. These challenges increased shipping costs globally, affecting the distribution of commodities, including potassium carbonate​

Russia’s position as a major energy supplier led to volatility in crude oil and natural gas prices, which are critical inputs for manufacturing and transportation. These price hikes directly increased production costs for chemicals like potassium carbonate​

• Texas Winter Storm (2021): The Texas Winter Storm of February 2021, also known as Winter Storm Uri, had significant impacts on the chemical industry, including potassium carbonate prices, due to widespread disruptions in production. The storm caused power outages and operational halts across major chemical manufacturing facilities, particularly in Texas and Louisiana, which produce a large portion of the U.S.’s chemicals.
• COVID-19 Pandemic (2020):  During the COVID-19 pandemic in 2020, potassium carbonate prices in the Asia-Pacific (APAC) region were influenced significantly by disruptions in global supply chains. The pandemic led to reduced industrial activity, delayed shipments, and logistical challenges, which in turn caused fluctuations in the availability and pricing of chemical commodities, including potassium carbonate. As demand from key industries like glass manufacturing, detergents, and agrochemicals declined temporarily due to lockdown measures, prices were initially volatile. However, toward the latter part of the year, as industries adapted to the new normal and operations resumed, supply chain pressures began to ease, stabilizing the prices​
• Geopolitical Tensions (2018-2019): Between 2018 and 2019, geopolitical tensions, such as trade disputes and economic sanctions, influenced global potassium carbonate markets. These conflicts, including U.S.-South Korea trade tensions, affected the cost and availability of potassium carbonate due to their impact on supply chains and raw material trade, such as potash. Disruptions in key exporting regions led to price volatility, with some markets experiencing increased costs due to limited supply and heightened transportation expenses.
• Shale Gas Boom (2010): The shale gas boom of 2010, driven by advancements in hydraulic fracturing and horizontal drilling, significantly increased the production of natural gas and related hydrocarbons in the U.S. This surge impacted global markets by reducing dependency on imports and causing a decline in energy costs. Potassium carbonate prices were indirectly influenced as the boom contributed to lower production costs in energy-intensive industries, including those producing potassium carbonate. Reduced natural gas prices led to cheaper ammonia and other feedstocks, which are critical in manufacturing processes for various chemicals, including potassium carbonate​
• Global Financial Crisis (2008-2009): During the Global Financial Crisis of 2008-2009, potassium carbonate prices were significantly affected due to the broader economic downturn that disrupted demand and supply chains globally. The crisis led to reduced industrial activity, particularly in key sectors like construction, glass manufacturing, and chemicals, which are major consumers of potassium carbonate. As a result, demand for the compound saw a sharp decline during this period.
• Hurricane Katrina (2005): The immediate impact on potassium carbonate prices was tied to the broader disruptions in energy and feedstock supplies. Natural gas and oil production were severely hampered, leading to cost escalations in energy-dependent chemical manufacturing. Additionally, the Gulf Coast’s ports, which are major hubs for importing and exporting raw materials and finished goods, faced operational restrictions, causing delays and increased shipping costs. These factors combined likely drove potassium carbonate prices upward in the short term due to constrained supply and increased production costs

These events underscore the Potassium carbonate market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.