Price trend of phosphoric acid in 2022

According to the monitoring data of SunSirs, the average ex-factory price of 85 thermal process phosphoric acid in China was 11,466 RMB/ton on January 1, and 9,025 RMB/ton on December 31. In 2022, the total annual decline of domestic thermal process phosphoric acid was 21.29%, the highest price in the year was 11,490 RMB/ton, and the lowest price in the year was 7,920 RMB/ton.

According to the monitoring data of SunSirs, the average ex-factory price of 85 wet-process phosphoric acid in China was 10,200 RMB/ton on January 1, and 9,083 RMB/ton on December 31. In 2022, the average ex-factory price of 85 wet-process phosphoric acid in China fell by 10.95%. The highest price in the year was 11,200 RMB/ton, and the lowest price in the year was 8,500 RMB/ton.

Capacity and Production

In 2022, the total capacity of domestic phosphoric acid will be 5.307 million tons, an increase of 18.72% over the same period last year, maintaining the growth trend. From the perspective of process distribution, thermal acid production capacity accounted for a large proportion. From the perspective of new units, the capacity of wet purification acid increased significantly, and most units had been extended to complement iron phosphate products. In 2022, the total domestic production of phosphoric acid was about 2.5022 million tons, an increase of 18.59% over the same period last year.

Downstream demand

The downstream demand of phosphoric acid market in 2022 was mainly in phosphate, food additives, surface treatment (phosphating oxidation) and other industries. About 40% of them were used for phosphate production. Phosphoric acid is one of the main raw materials of ferrous lithium phosphate, and the demand industry also includes iron phosphate industry.

Future Forecast 

Phosphoric acid analysts of SunSirs believe that phosphoric acid was at a high level in the first half of 2022, and weakened in shock in the second half of the year. The capacity and output of phosphoric acid increased year on year in 2022. With the rapid development of new energy, the demand of downstream iron phosphate manufacturers for purified phosphoric acid market has increased. It is expected that the phosphoric acid market will run well in 2023 and the production capacity and output will continue to increase.

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