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Recently, the price of potassium chloride has increased significantly, especially in the Northeast market. The price of 60% red big granules in Yingkou port has increased by nearly 400 yuan / ton. At present, the quotation is 4300-4350 yuan / ton, which is higher than the price in last year's peak.

The operating rate of the downstream compound fertilizer plants has been gradually recovering, and the procurements in the Northeast market has begun to start in an all-round way. However, at this time, it was found that the supply of potassium chloride was much less than expected. On the one hand, there are few ships arriving at Yingkou port (according to statistics, the annual arrival of potassium chloride in Bayuquan in 2021 was only 500 or 600 thousand million tons), the arrival of domestic potassium is also limited, and the import of border trade is one month less. On the other hand, the production capacity of compound fertilizer and potassium sulfate has increased. These factors have caused the shortage of goods in the Northeast market.

In fact, this situation is not only in the Northeast, but it is the most obvious in Northeast at present. Compared with 2020, the sum of domestic production and import in 2021 is decreased by almost 10%. If the supply cannot be supplemented in time, the recent performance of the Northeast market may repeat itself in other regions and even the whole country.

The demand should also be reduced, but the degree is uncertain. In addition, there is no news about big contracts, and there is no news about government policies for the time being. It is uncertain how long the high price of potassium chloride can last and how high it can reach. What can be determined is that the risk would not be low. Short-term price increases, and the long-term remains confused. Sellers and buyers will continue to tangle, especially buyers.