- Potassium nitrate prices in Jordan have increased by 2% during the month.
- The reason for the increase is increased demand due to seasonal agricultural needs and weather conditions in different areas of the world, as well as a steady increase in global demand for potassium nitrate.
- Despite the reduction in domestic fertiliser reserves, the situation related to changes in the fertiliser market in Jordan should stabilise by the end of the holidays.
- Key companies in the industry are taking action to minimise the impact of increased demand for potassium nitrate.
Why are potassium nitrate prices rising?
Prices for potassium nitrate (KNO3) in Jordan rose by 2% in May compared to the previous month. The increase was $15 per tonne – the price of a tonne of potassium nitrate is now $850. These changes reflect a significant increase in fertiliser prices due to various factors boiling down to increased demand and limited supply. Prices for other fertilisers, including potassium chloride, have also increased. A potential increase in demand for potassium nitrate is forecast for June, but without further price changes. In August, fertiliser demand is expected to weaken.
The increased demand is for the global market, including countries importing potassium nitrate from Jordan, such as India, the USA, Saudi Arabia, Iraq and Belgium. Potassium nitrate production capacity constraints in Jordan have resulted in supply shortfalls relative to global demand, leading to higher prices and reduced domestic fertiliser reserves. Jordan Phosphates Mines Company (JPMC) has announced a strategic partnership with Waterise on a deep-sea desalination project, highlighting efforts to meet operational needs in the face of rising fertiliser prices.
Global potassium nitrate market
The value of the potassium nitrate market continues to grow. Last year, it reached US$1.8 billion. It is expected to grow further in the next decade – up to $2.2 billion in 2032. Potassium nitrate is mainly used in agriculture, where 34% of the compound reaching the market is applied. Other uses include glass production, pharmacology, the food industry and others. The demand for potassium nitrate continues to grow in the fertiliser market, as well as in the production of fireworks and medicines.
