Potassium sulphate (K2SO4) or sulphate of potash (SOP) is a premium fertilizer, which could provide multiple benefits for plants (specifically higher-value crops) and certain types of soils. The role of this fertilizer increases especially when chloride addition should be avoided (in case of chloride-sensitive crops) and when sulphur (the forth macro nutrient) introduction is needed. The global market for potassium sulphate has a certain degree of volatility as all fertilizer markets do, and this volatility is prone to increase when several factors synergize, though the steady demand for this fertilizer levels off possible excesses. In general, SOP consumption in the developed countries is rather flat, demonstrating plateau-like effects and non-impressive spikes/falls, which makes it different from the SOP market trends in developing countries, where general growth is more dramatic. In 2014, global SOP production capacity stood at 8.2 mln mty, while output and consumption were pretty much balanced at around 5.5 mln mty. These figures give an average capacity utilization rates within a range of 60-70%, which of course greatly vary subject to company type (utilization rates are higher for integrated producers), region, market conditions or other factors. Large SOP capacity additions are planned in Canada, China, Eritrea, Ethiopia, India, Kazakhstan, Turkmenistan, the UK, the USA and some other countries. In 2014, top five SOP-producing countries were as follows: China, Germany, Belgium, the USA, and Chile.
Potassium sulphate: structure of the global production by country, 2014
Major five SOP manufacturers were: SDIC Xinjiang Luobupo Potash Co., Ltd., K+S KALI GmbH, Tessenderlo Group, Qing Shang Chemical Group, and Great Salt Lake Minerals Company. Capacities of major producers are mainly localized in one or two countries, which increases monopolization of the potassium sulphate market.
More information on the potassium sulphate (SOP) market can be found in the insightful research study “Potassium Sulphate (SOP) 2015 World Market Outlook and Forecast up to 2019”.