Germany, the United States, and China are the leading exporters of potassium hydroxide, collectively accounting for over 40% of global exports in recent years; major importers include India, South Korea, and Mexico, driven by demand from chemical manufacturing and battery production. Imports by India and South Korea have risen steadily since 2022, coinciding with upward pressure on potassium hydroxide prices amid tightening supply chains and increased electrolyte demand for energy storage applications.
Hydrogen Potassium Hydroxide (KOH) Recent Commodity Market Intelligence Report
I. Price Dynamics
- Recent Quotation Volatility: As of April 12, 2026, the latest factory quotation for potassium hydroxide stood at RMB 6,500 per metric ton; quotations on April 7, March 31, March 25, March 18, March 17, and March 10 were RMB 3,000 per metric ton (note: multiple quotations existed on March 10—including RMB 3,300/ton—likely attributable to differences in product specifications, regional pricing, or transaction terms); quotations on April 5, March 29, March 22, and March 15 were RMB 6,100 per metric ton; and quotations on March 9, March 3, March 2, February 25, February 24, and February 22 ranged between RMB 3,300 and RMB 3,500 per metric ton.
- Price Trend Analysis: Recent KOH prices have exhibited significant volatility, with pronounced inter-day quotation disparities—reflecting instability in market supply-demand dynamics, as well as potential regional, specification-, or contractual-condition-related variations.
II. Market Supply and Demand
- Supply Situation:
- As of end-2025, China hosted 17 enterprises with large-scale potassium hydroxide solution production capacity, with a total designed annual capacity of 2.18 million metric tons. The industry’s average operating rate remained at 86.4%, indicating an overall tight supply-demand equilibrium, with capacity utilization increasingly concentrated in high-efficiency facilities.
- In 2025, China’s total potassium hydroxide solution output reached 1.885 million metric tons, representing a 6.9% year-on-year increase. Among this, standard industrial-grade solution (48% concentration) accounted for 73.2%; high-purity electronic-grade solution (≥99.99%) output totaled 51,000 metric tons, growing 14.8% YoY—significantly outpacing the industry-wide average growth rate.
- Demand Situation:
- Battery-grade potassium hydroxide usage in new-energy industrial chains rose to 31.7% in 2025, primarily applied in nickel-cobalt-manganese (NCM) cathode precursor synthesis and solid-state electrolyte system development. Consumption in this segment reached 788,000 metric tons, up 12.4% YoY.
- Food-grade and pharmaceutical-grade potassium hydroxide demand maintained steady growth, with 2025 consumption reaching 365,000 metric tons (+7.9% YoY), driven by upgraded domestic injectable-excipient standards and stricter regulatory oversight of functional food additives—spurring substitution demand.
- Traditional industrial applications (e.g., saponification, dye intermediates, water treatment chemicals) remain dominant but exhibit slowing growth: 2025 consumption totaled 1.332 million metric tons (+3.8% YoY), while its market share declined from 62.5% in 2021 to 53.6% in 2025.
III. Industry Developments and Policy Impacts
- Industry Developments:
- Juhua Co., Ltd. (Zhejiang) has achieved mass production of electronic-grade KOH with purity up to 99.999% and concurrently commissioned a 10,000-ton-per-year production line for solid KOH adsorbents dedicated to CO? capture.
- Hubei Xingfa Chemicals Group Co., Ltd. completed certification of its electronic-grade KOH production line in Q3 2025 and has passed supply-chain audits by Semiconductor Manufacturing International Corporation (SMIC), entering pilot-batch delivery phase.
- Tianjin Botian Chemical Co., Ltd., leveraging low-temperature crystallization purification technology co-developed with Dalian Institute of Chemical Physics, Chinese Academy of Sciences, successfully reduced metallic impurities (Fe, Ni, Cu) to ≤0.1 ppb—meeting SEMI F57 standards.
- Policy Impacts:
- The ‘Industrial Structure Adjustment Guidance Catalogue (2024 Edition)’ classifies ‘electronic-grade potassium hydroxide (purity ≥99.999%)’ as a priority encouraged category. Combined with the Ministry of Finance’s extension of insurance compensation mechanisms under the ‘First-of-a-Kind Major Equipment Promotion Program’, enterprises possessing proprietary purification technologies and downstream validation capabilities have gained substantial first-mover advantages.
- The Ministry of Ecology and Environment’s ‘Pilot Program for Carbon Monitoring and Assessment’ is driving deployment of mobile CO? capture systems in thermal power and steel industries. Shandong Iron and Steel Group has commissioned China’s first modular KOH-based CO? capture system at its Rizhao base, with each unit consuming 320 tons of KOH annually.
IV. Analysis and Assessment
- Supply-Demand Relationship: The current KOH market operates under tight supply-demand equilibrium. While overall capacity utilization remains high among efficient producers, supply-demand conditions vary markedly across product grades: high-purity electronic-grade KOH faces robust demand and relatively constrained supply, whereas traditional industrial-grade KOH experiences slower demand growth and comparatively ample supply.
- Price Trend Outlook: KOH prices are subject to multi-factor influences—including supply-demand imbalances, raw material cost fluctuations, and policy interventions. In the short term, prices will likely continue fluctuating in response to these variables; over the longer term, technological upgrading and optimization of production capacity structures are expected to gradually stabilize prices.
- Industry Trends: The KOH industry is undergoing a strategic transformation—from bulk commodity chemicals toward functionalized, customized specialty chemicals. High-purity and electronic-grade KOH have emerged as core growth vectors. Concurrently, tightening environmental regulations and heightened energy-efficiency requirements are accelerating green, low-carbon development across the sector.
V. Forecasts
- Market Size: China’s KOH market size is projected to expand further in 2026, buoyed by rapid growth in downstream sectors such as new energy and semiconductors—particularly fueling sustained demand for high-purity and electronic-grade KOH.
- Price Trend: In the near term, KOH prices will likely remain volatile, albeit with narrowing amplitude; over the medium-to-long term, improved supply-demand balance and structural optimization of production capacity are expected to foster price stabilization and moderate upward pressure.
- Industry Landscape: Market concentration is anticipated to rise further, with technologically advanced and scale-efficient enterprises capturing larger market shares. Meanwhile, stringent environmental policies and energy-consumption standards will accelerate the phase-out of outdated capacity, reinforcing the industry’s transition toward green, low-carbon development.
Potassium hydroxide (CAS 1310-58-3) is a white, deliquescent solid at room temperature, typically supplied as flakes, pellets, or aqueous solutions; it has no discernible odor and melts at approximately 360?°C. It is a strong inorganic base and alkali metal hydroxide. Industrially, it serves as a key reagent in saponification, pH adjustment, and neutralization reactions, and functions as an essential intermediate in the production of potassium salts, soft soaps, and biodiesel. Its primary application areas include agrochemicals (e.g., formulation of pesticides and herbicides), pharmaceuticals (as a catalyst or pH regulator), batteries (especially alkaline and nickel–cadmium types), and specialty chemicals for textiles and electroplating.
Potassium hydroxide has many different functions and uses.It is primarily used as an intermediate in industrial manufacturing processes, such as the manufacture of fertilisers, potassium carbonate or other potassium salts and organic chemicals.It is also used in the manufacture of detergents and in alkaline batteries.Small-scale uses include drain cleaning products, paint removers and degreasing agents.manufacture of liquid soap;mordant for wood;absorbing CO2;mercerizing cotton;paint and varnish removers;electroplating, photoengraving and lithography;printing inks;in analytical chemistry and in organic syntheses.Pharmaceutic aid (alkalizer).
Pure potassium hydroxide is a solid at room temperature, though it is often sold as a liquid. Potassium hydroxide is a strong alkaline substance that dissociates completely in water into the potassium ion (K+) and hydroxide ion (OH-). The dissolution in water generates heat, so a vigorous reaction can occur when potassium hydroxide is added to water. The vapor pressure of the substance is very low and the melting point is high. Potassium hydroxide solutions attack aluminium and its alloys under formation of hydrogen gas. It can be neutralised with acids (e.g. hydrochloric acid) giving the corresponding potassium salts of the acids, which are usually pH neutral and non-corrosive.
This chemical is included in Basic Chemicals. See more about what is Potassium hydroxide and Potassium hydroxide SDS information.
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