MERCOSUR: Potassium Sulphate (Sop) Market 2024

Potassium Sulphate (Sop) Market Size in MERCOSUR

In 2022, the MERCOSUR potassium sulphate (SOP) market increased by 4.6% to $X, rising for the sixth year in a row after three years of decline. The market value increased at an average annual rate of +3.4% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the market reached the peak level in 2022 and is expected to retain growth in years to come.

Potassium Sulphate (Sop) Production in MERCOSUR

In value terms, potassium sulphate (SOP) production reduced slightly to $X in 2022 estimated in export price. In general, production, however, showed a relatively flat trend pattern. The growth pace was the most rapid in 2019 when the production volume increased by 12% against the previous year. The level of production peaked at $X in 2013; however, from 2014 to 2022, production failed to regain momentum.

Potassium Sulphate (Sop) Exports

Exports in MERCOSUR

In 2022, shipments abroad of potassium sulphate (SOP) decreased by -20.3% to X tons, falling for the second consecutive year after two years of growth. Overall, exports saw a drastic downturn. The pace of growth appeared the most rapid in 2014 with an increase of 194% against the previous year. Over the period under review, the exports attained the peak figure at X tons in 2016; however, from 2017 to 2022, the exports stood at a somewhat lower figure.

In value terms, potassium sulphate (SOP) exports skyrocketed to $X in 2022. Over the period under review, exports showed a deep contraction. The growth pace was the most rapid in 2014 with an increase of 179%. The level of export peaked at $X in 2016; however, from 2017 to 2022, the exports remained at a lower figure.

Exports by Country

Chile dominates exports structure, recording X tons, which was approx. 95% of total exports in 2022. Brazil (X tons) held a little share of total exports.

Exports from Chile decreased at an average annual rate of -19.3% from 2012 to 2022. Brazil experienced a relatively flat trend pattern. While the share of Brazil (+3.4 p.p.) increased significantly in terms of the total exports from 2012-2022, the share of Chile (-4 p.p.) displayed negative dynamics.

In value terms, Chile ($X) remains the largest potassium sulphate (SOP) supplier in MERCOSUR, comprising 93% of total exports. The second position in the ranking was taken by Brazil ($X), with a 6% share of total exports.

In Chile, potassium sulphate (SOP) exports contracted by an average annual rate of -13.4% over the period from 2012-2022.

Export Prices by Country

In 2022, the export price in MERCOSUR amounted to $X per ton, jumping by 78% against the previous year. In general, the export price posted resilient growth. As a result, the export price reached the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Brazil ($X per ton), while Chile stood at $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Chile (+7.3%).

Potassium Sulphate (Sop) Imports

Imports in MERCOSUR

Potassium sulphate (SOP) imports rose rapidly to X tons in 2022, increasing by 9.6% compared with the year before. Total imports indicated a strong increase from 2012 to 2022: its volume increased at an average annual rate of +5.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +71.1% against 2015 indices. The pace of growth was the most pronounced in 2020 with an increase of 25% against the previous year. Over the period under review, imports reached the peak figure in 2022 and are expected to retain growth in the near future.

In value terms, potassium sulphate (SOP) imports surged to $X in 2022. Total imports indicated a notable increase from 2012 to 2022: its value increased at an average annual rate of +4.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +80.1% against 2017 indices. As a result, imports attained the peak and are likely to continue growth in the immediate term.

Imports by Country

Peru (X tons) and Brazil (X tons) represented the main importers of potassium sulphate (SOP) in 2022, recording approx. 33% and 29% of total imports, respectively. It was distantly followed by Chile (X tons), Colombia (X tons) and Ecuador (X tons), together comprising a 33% share of total imports. Argentina (X tons) took a relatively small share of total imports.

From 2012 to 2022, the biggest increases were recorded for Chile (with a CAGR of +10.9%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, Brazil ($X), Peru ($X) and Chile ($X) appeared to be the countries with the highest levels of imports in 2022, together comprising 77% of total imports.

Chile, with a CAGR of +13.1%, recorded the highest rates of growth with regard to the value of imports, in terms of the main importing countries over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the import price in MERCOSUR amounted to $X per ton, increasing by 15% against the previous year. Over the period under review, the import price, however, showed a relatively flat trend pattern. The growth pace was the most rapid in 2021 an increase of 16%. Over the period under review, import prices hit record highs at $X per ton in 2015; however, from 2016 to 2022, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Argentina ($X per ton), while Peru ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Argentina (+4.7%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform