Market Intelligence Report on Potassium Persulfate (Recent Developments)

I. Price Trend
- **Stable Prices Recently**: As of May 25, 2026, the benchmark price of potassium persulfate on Shengyishe.com stood at RMB 11,200.00 per metric ton, unchanged from the beginning of May. From May 1 to May 25, 2026, the price remained flat at RMB 11,200.00 per metric ton.
- **Annual High**: The current price represents the highest level over the past 12 months; the maximum price recorded matches the current level, while the minimum was RMB 10,375.00 per metric ton—representing a spread of RMB 825.00 per metric ton. The 12-month average price is RMB 10,571.69 per metric ton.

II. Supply and Demand Dynamics
- **Supply Side**:
- Regional pricing discrepancies are evident in Shandong Province. For example, Shandong Yihong Chemical Co., Ltd. quoted RMB 10,500 per metric ton, whereas other suppliers’ quotations ranged between RMB 8,000–10,600 per metric ton, reflecting fragmented market supply.
- Industry capacity is unevenly distributed. Large-scale enterprises—including Fujian Zhanhua Chemical Co., Ltd.—have enhanced production technologies and process efficiency, achieving an annual output of 12,000 metric tons, thereby dominating the market.
- **Demand Side**:
- Downstream applications are broad, spanning new-energy batteries, eco-friendly materials, hair-coloring agents in cosmetics, ABS plastics, and agrochemicals. Notably, demand from the new-energy sector has grown significantly: potassium persulfate serves as an electrolyte additive in lithium-ion batteries and fuel cells, with sustained expansion expected.
- Driven by environmental policies, potassium persulfate—recognized as a green oxidant—is increasingly adopted in water treatment and air purification, further boosting overall demand.

III. Related Market Influences
- **Linkage with Potassium Sulfate Market**: On May 5, 2026, potassium chloride prices rose due to reduced import volumes and declining port inventories. Consequently, potassium sulfate manufacturers raised ex-factory prices by RMB 100–150 per metric ton under cost pressure. However, the potassium persulfate market remained unaffected directly and maintained price stability.
- **Substitute Competition**: While potassium persulfate faces competition from alternative chemicals in oxidant and initiator applications, its environmentally benign profile grants it a competitive edge in premium-market segments.

Analysis & Assessment

I. Reasons for Price Stability
- **Balanced Supply-Demand**: Current supply aligns closely with downstream demand. Major producers maintain stable output, while smaller players’ dispersed supply has not triggered mass selling or hoarding behavior.
- **Cost Support**: Fluctuations in raw material prices—particularly sulfuric acid and potassium chloride—exert limited impact on potassium persulfate’s production cost. Enterprises sustain profitability through process optimization and economies of scale.
- **Policy Support**: National incentives for new-energy and environmental-protection industries indirectly stabilize demand for potassium persulfate, preventing sharp price volatility.

II. Market Risks
- **Regional Price Disparities**: Significant quotation variations among Shandong-based suppliers may lead to market confusion and pose risks of low-priced supplies undermining mainstream pricing.
- **Downstream Sector Volatility**: The new-energy battery industry remains highly sensitive to policy shifts and technological advancements. A slowdown in demand growth could exert downward pressure on the potassium persulfate market.

Forecast

I. Short-Term Price Outlook
- **Continued Stability**: Over the next 1–2 weeks, potassium persulfate prices are expected to remain unchanged at RMB 11,200.00 per metric ton, as both buyers and sellers adopt a wait-and-see stance amid lack of clear market catalysts.

II. Medium-to-Long-Term Trends
- **Rising Demand**: Ongoing expansion of new-energy battery manufacturing capacity and deepening adoption across environmental-protection applications will likely drive steady demand growth, supporting moderate price appreciation.
- **Capacity Optimization**: Leading enterprises are expected to further consolidate market share via technological upgrades and capacity expansions. Smaller players may face consolidation or exit, resulting in higher industry concentration.
- **Price Range**: The annual price center is projected to shift upward to RMB 10,800–11,500 per metric ton. Under extreme conditions—e.g., sharp cost increases or strong policy tailwinds—the price could exceed RMB 12,000 per metric ton, contingent upon raw material costs and regulatory developments.

III. Key Influencing Factors
- **New-Energy Policies**: Adjustments to national subsidies for new-energy vehicles and energy-storage systems will directly affect potassium persulfate demand.
- **Environmental Regulation**: Stricter environmental standards may accelerate substitution of traditional hazardous chemicals with potassium persulfate, expanding its market share.
- **International Trade**: Import price fluctuations of potassium chloride and sulfuric acid may transmit upstream cost pressures into the potassium persulfate market.