Price trend

According to the Commodity Market Analysis System of SunSirs, as of July 9th, the reference average price of 85% thermal phosphoric acid in China was 6,460 RMB/ton, which was 0.16% higher than the reference average price of 6,450 RMB/ton on July 1st.

According to the Commodity Market Analysis System of SunSirs, as of July 9th, the reference average price of 85% wet process phosphoric acid in China was 6,666 RMB/ton, which was a decrease of 0.99% compared to the reference average price of 6,733 RMB/ton on July 1st.

Analysis review

Entering July, the domestic phosphoric acid market prices have fluctuated and stabilized. As of July 9th, the market price of 85% thermal phosphoric acid in Hubei region was around 6,300-6,800 RMB/ton, and the factory price of 85% industrial phosphoric acid in Sichuan region was around 6,300-6,500 RMB/ton. The domestic market quotation for 85% wet process phosphoric acid was around 6,600 RMB/ton.

Cost side

In terms of raw material phosphorus yellow: In early July, the market price of phosphorus yellow steadily increased. The operating rate of enterprises had declined, with phosphorus yellow manufacturers mainly raising prices. Downstream demand performance was average, with a mainly wait-and-see attitude. It is expected that the domestic phosphorus yellow price will consolidate at high levels in the short term.

Market for raw material phosphate rock: The market price of phosphate rock had slightly increased this month. The inquiry atmosphere inside the phosphate rock field was mild, and some areas were experiencing tight supply of phosphate rock. It is expected that domestic phosphate rock prices will remain stable in the short term.

Supply and demand side

As of July 9th, the phosphoric acid market had sufficient supply and a moderate trading atmosphere. The demand for phosphoric acid in the market was weak, and downstream procurement enthusiasm was average. Manufacturers and distributors tended to adopt a wait-and-see attitude, with one order being negotiated separately.

Market outlook

SunSirs' phosphoric acid analyst believes that the recent phosphoric acid market had seen a narrow consolidation and operation. The raw material phosphorus yellow market was rising, and the cost of thermal phosphoric acid had support. The supply of wet process phosphoric acid had decreased, but downstream demand was weak. It is expected that the short-term market price of phosphoric acid may follow a slight increase in raw materials.

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