According to the Commodity Market Analysis System of SunSirs, as of May 11th, the reference average price for 85% thermal method phosphoric acid in China was 6,550 RMB/ton, which was a decrease of 5.35% compared to the reference average price of 6,920 RMB/ton on May 4th.

According to the Commodity Market Analysis System of SunSirs, as of May 11th, the reference average price of 85% wet process phosphoric acid in China was 6,683 RMB/ton, which was 3.84% lower than the reference average price of 6,950 RMB/ton on May 4th.

Analysis review

The price of phosphoric acid market continued to decline this week. The prices of raw phosphate rock and phosphorus yellow continued to decline, with weak cost support. Downstream demand continued to be sluggish, market transactions were poor, and the bearish sentiment in the phosphoric acid market was strong. As of May 11th, the factory quotation for 85% thermal method phosphoric acid in Sichuan region was around 5,900-6,500 RMB/ton, while the factory quotation for 85% thermal method phosphoric acid in Yunnan region was around 6,500 RMB/ton, and the factory quotation for 85% thermal method phosphoric acid in Hubei region was around 6,350-6,450 RMB/ton. The domestic market quotation for 85% wet process phosphoric acid was around 6,350-7,100 RMB/ton.

In terms of raw material phosphorus yellow, the market price of Yunnan Guizhou phosphorus yellow fell this week. As of the 11th, the overall market trading situation of phosphorus yellow was poor, and the demand on the market continued to be weak. The inventory on site was under pressure, and some enterprises were stopping for maintenance to alleviate the pressure. The manufacturer did not provide external quotations for the time being, and discussed on the actual order in detail.

In terms of raw phosphate rock, the overall domestic phosphate rock market was weak and declining this week, with the overall focus of the market exploring downward. As of the 11th, although the overall support for the supply side of phosphate rock in China was still acceptable, the overall operating rate downstream of the phosphate rock industry chain was low, and the demand for phosphate rock in some regions was weakened. The overall atmosphere in the phosphate rock field was average, and some mining companies had lowered the price of mid to high-end grade phosphate rock by around 20-50 RMB/ton.

Market outlook

According to phosphoric acid analysts from SunSirs, the phosphoric acid market remained weak in recent days, with raw material prices decreasing and cost side support weakening. Downstream demand was weak, and the mentality of buying up instead of buying down increased, with a focus on wait-and-see. Under the influence of negative factors, the phosphoric acid market price is expected to continue to decline in the short term.

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