Hydrogen Potassium Hydroxide (KOH) Commodity Market Intelligence, Analysis, and Forecast

I. Market Intelligence

Price Information
- Base Price: According to Shengyishe data, the benchmark price of potassium hydroxide on May 22, 2026, was RMB 7,360.00 per ton, up from RMB 7,180.00 per ton on May 14, 2026.
- Regional Quotations:
- Qinghai Province: On May 26, 2026, Shandong Xinge Chemical Co., Ltd. quoted RMB 7,000/ton for Qinghai Salt Lake-produced potassium hydroxide (90% purity) in Linyi City, Shandong Province; Shandong Beilu Hengsheng Chemical Co., Ltd. quoted RMB 6,600/ton for Qinghai Salt Lake-produced potassium hydroxide in Qinghai Province.
- Changsha City, Hunan Province: On May 26, 2026, Pingxiang Lixin Biochemical High-Tech Co., Ltd. quoted RMB 7,600/ton for Inner Mongolia Ruida Taifeng-produced potassium hydroxide (90% purity); Huaron-produced potassium hydroxide (90% purity) had an ex-factory price of RMB 8,200/ton; Chengdu Huaron-produced potassium hydroxide (90% purity, 25 kg/bag) was quoted at RMB 8,200/ton; domestic potassium hydroxide (90% purity, 25 kg/bag) was quoted at RMB 7,400/ton; analytical reagent-grade potassium hydroxide (91% purity) was quoted at RMB 7,800/ton; and Chengdu Huaron food-grade potassium hydroxide was quoted at RMB 8,300/ton.
- Tangshan City, Hebei Province: On May 26, 2026, Pingxiang Lixin Biochemical High-Tech Co., Ltd. quoted RMB 7,700/ton for Tangshan Sanfu-produced potassium hydroxide (90% purity).
- Nanchang City, Jiangxi Province: On May 26, 2026, Pingxiang Lixin Biochemical High-Tech Co., Ltd. quoted RMB 7,600/ton for Inner Mongolia Ruida-produced potassium hydroxide (90% purity); Sichuan Huaron-produced potassium hydroxide (95% purity) had an ex-factory price of RMB 9,400/ton; electronic-grade potassium hydroxide was quoted at RMB 8,200/ton; domestic potassium hydroxide (90% purity) was quoted at RMB 7,400/ton; and Qinghai Salt Lake Chemical Industry-produced industrial-grade potassium hydroxide (90% purity) was quoted at RMB 7,500/ton.
- Jinan City, Shandong Province: On May 26, 2026, quotations varied significantly—Shandong Hongyang Chemical Co., Ltd. quoted RMB 6,400/ton; Shandong Zhihengda Import & Export Co., Ltd. quoted RMB 6,000/ton; Pingxiang Lixin Biochemical High-Tech Co., Ltd. quoted RMB 7,400/ton; Shandong Jinshengrun Chemical Co., Ltd. offered varying brand quotations between RMB 6,500–7,000/ton; Jinan Angxin Chemical Co., Ltd. quoted RMB 7,200/ton for Huaron-produced potassium hydroxide; and Qinghai Salt Lake-produced potassium hydroxide was also quoted at RMB 7,200/ton.
- Chengdu City, Sichuan Province: On May 26, 2026, Pingxiang Lixin Biochemical High-Tech Co., Ltd. quoted RMB 9,300/ton for Sichuan Huaron’s high-quality flake potassium hydroxide (95% purity); Sichuan Huaron-produced potassium hydroxide (90% purity) had an ex-factory price of RMB 8,200/ton.
- Guangzhou City, Guangdong Province: On May 26, 2026, Guangzhou Tianyue Chemical Co., Ltd. quoted RMB 7,100/ton for Jiangsu Youlide-produced potassium hydroxide and RMB 7,100/ton for Korean Youlide-produced potassium hydroxide.
- Xinjiang Uygur Autonomous Region: On May 26, 2026, Shandong Beilu Hengsheng Chemical Co., Ltd. quoted RMB 6,100/ton for domestic industrial-grade potassium hydroxide (90% purity).

Industry Dynamics
- Cost Drivers: In 2025, the domestic potassium chloride market average price increased approximately 27% year-on-year. China’s import dependency on potassium fertilizer exceeds 60%, and global potash supply constraints have been transmitted through the value chain to the potassium hydroxide sector. However, in 2024, high prior-year prices suppressed demand, and gradual global supply chain recovery led to a correction in international potash prices from peak levels.
- Supply-Demand Balance: In June 2025, industry operating rates declined to 59.78%, down 12.58 percentage points year-on-year, while inventory rose by 33.74% to 29,000 tons—indicating weak market demand. Demand erosion was pronounced in traditional chemical sectors, and growth in emerging fields such as new energy and pharmaceuticals failed to fully offset this decline. From January to May 2025, imports totaled 4,441 tons, down 74.31% year-on-year; exports reached 27,400 tons, down 23.48% year-on-year.
- Policy Environment: Strict enforcement of the ‘Evaluation Index System for Clean Production in the Potassium Hydroxide Industry’ mandates that enterprises maintain unit-product comprehensive energy consumption below 1.2 tons of standard coal per ton of product, accelerating the exit of outdated capacity and compelling industry transformation toward high-end, green production.

II. Analysis and Judgment

Causes of Price Volatility
- Cost Push: Potassium chloride—the primary raw material for potassium hydroxide—exerts a significant influence on KOH pricing. The 2025 increase in potassium chloride prices drove upward pressure on KOH prices. Although international potash prices subsequently retreated, residual cost inertia remains evident.
- Supply-Demand Imbalance: Declining operating rates coupled with rising inventories reflect insufficient demand. Shrinking demand in traditional sectors, combined with limited incremental demand from emerging sectors, has resulted in structural market imbalance, exerting downward pressure on prices.
- Regional Disparities: Price variations across regions stem from differences in local production costs, transportation expenses, regional supply-demand conditions, and enterprise pricing strategies. For instance, Qinghai benefits from resource advantages, enabling relatively lower quotations by some producers; whereas provinces like Hunan and Hebei exhibit higher prices due to localized demand intensity and brand positioning.

Industry Development Trends
- High-End Transformation: Regulatory mandates and internal corporate strategic imperatives are driving industry-wide upgrading toward high-end products. The share of high-purity grades—including electronic-grade and reagent-grade KOH—is steadily increasing. Enterprises possessing electronic-grade certification consistently report gross margins significantly above the industry average, underscoring the profitability and resilience of high-value-added segments.
- Green Development: Implementation of clean production policies compels enterprises to reduce unit-product energy consumption. Firms are adopting technological upgrades, energy-efficient equipment, and advanced processes such as ion-exchange membrane electrolysis to enhance efficiency and minimize environmental impact.
- Export Market Expansion: In 2025, China’s solid potassium hydroxide exports increased year-on-year, primarily targeting Southeast Asia, India, Turkey, and South America. In 2026, deepening tariff reductions under the Regional Comprehensive Economic Partnership (RCEP) framework, alongside declining maritime freight costs, are expected to further boost export volumes—providing enterprises with additional growth avenues.

III. Forecast

Price Outlook
- Short Term: Potassium hydroxide prices are likely to remain volatile. Although potassium chloride prices have moderated, lingering cost inertia persists; meanwhile, electricity and other input costs retain uncertainty. On the demand side, sluggish market conditions may persist near-term, exerting downward pressure on prices. Nevertheless, gradually expanding demand from new energy and pharmaceutical applications may provide partial price support.
- Long Term: As high-end and green transformation accelerates, the share of premium products will continue rising, leading to structural shifts in pricing. Prices for high-end products—underpinned by technical barriers and robust end-market demand—are expected to remain stable or rise modestly; conversely, commodity-grade industrial KOH prices may face heightened volatility amid intensified competition.

Industry Development Outlook
- Capacity Expansion and Structural Adjustment: Outdated capacity will be progressively phased out, while new investments will concentrate among technologically advanced, environmentally compliant enterprises. Producers will prioritize rational geographic deployment and portfolio optimization—increasing production capacity for high-end products to better align with evolving market needs.
- Technological Innovation and R&D Investment: To capture greater share in high-end markets, enterprises will intensify investment in R&D and process innovation—enhancing product quality, consistency, and performance. Examples include raising the purity and stability of electronic-grade KOH and developing novel formulations tailored to emerging application domains.
- Market Expansion and Internationalization Strategy: Domestic enterprises will continue broadening both domestic and overseas market presence, strengthening partnerships with international clients. In export markets, firms will leverage RCEP-related tariff advantages to expand footprints in Southeast Asia and the Middle East; simultaneously, they will proactively target high-end markets—including North America and Europe—to elevate the global competitiveness and brand recognition of Chinese-made potassium hydroxide.