Price trend

According to the commodity market analysis system of SunSirsy, as of June 8, the reference average price of 85% thermal method phosphoric acid in China was 6,340 RMB/ton, which was 1.93% higher than the reference average price of 6,220 RMB/ton on June 1.

According to the Commodity Market Analysis System of SunSirs, as of June 8th, the reference average price of 85% wet process phosphoric acid in China was 6,033 RMB/ton, which was 3.90% higher than the reference average price of 5,983 RMB/ton on June 1st.

Analysis review

The market price of phosphoric acid had risen this week. The price of raw material phosphorus yellow increased, cost support was strengthened, and the rise in raw material prices had boosted the phosphoric acid market upward slightly. However, market transactions were still relatively low, and there was currently no positive support on the demand side. As of June 8, the ex factory quotation of 85% thermal method phosphoric acid in Yunnan was about 6,500 RMB/ton, and that of 85% thermal method phosphoric acid in Hubei was about 6,200-6,600 RMB/ton. The domestic market quotation for 85% wet process phosphoric acid was around 5,650-6,500 RMB/ton.

In terms of raw material phosphorus yellow, the price center of the Yunnan and Guizhou phosphorus yellow market was upward this week. As of June 8, the overall market trading situation of phosphorus yellow was light, and the market construction was still at a low level, with some enterprises delaying the start-up. Downstream enterprises were cautious in procurement, with poor enthusiasm for procurement, maintaining a wait-and-see attitude, prioritizing procurement on demand, and suppressing price inquiries. The manufacturer mainly issued preliminary orders, but there was not much inventory on site, and they were reluctant to sell at low prices, resulting in a relatively stagnant supply and demand. The enterprise did not provide external quotations for the time being, and discussed the actual order in detail. As of 8th, the quotation was around 23,200-23,500 RMB/ton, and the actual transaction was subject to negotiation.

In terms of raw phosphate rock, the domestic phosphate rock market as a whole showed stable and consolidated operation this week. At the beginning of the month, the overall downstream demand for domestic phosphate rock did not change much, with average demand support. The overall supply side was slightly tight, and the supply side provided some support. The trading atmosphere in the phosphate rock field was light, and the mentality of the phosphate rock industry was average. The overall market remained stable and excessively operated. As of June 8th, the domestic market price of 30% grade phosphate rock was around 950-1,100 RMB/ton.

Market outlook

Phosphoric acid analysts from SunSirs believe that due to the recent increase in raw material phosphorus yellow prices, the market price of phosphoric acid had followed suit. As of 8th, raw material prices stabilized, and the upward momentum of phosphoric acid was insufficient, leading to an increase in wait-and-see sentiment. It is expected that in the short term, the price of phosphoric acid will mainly be adjusted and operated within a narrow range.

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