Price trend

According to the Commodity Market Analysis System of SunSirs, as of January 7th, the reference average price of 85% thermal phosphoric acid in China was 6,680 RMB/ton, which was 0.75% higher than the reference average price of 6,630 RMB/ton on January 1st.

According to the Commodity Market Analysis System of SunSirs, as of January 7th, the reference average price of 85% wet process phosphoric acid in China was 7,050 RMB/ton, which was 0.71% higher than the reference average of 7,000 RMB/ton on January 1st.

Analysis review

Market situation

Domestic phosphoric acid prices have risen this week. As of January 7th, the ex factory price of 85% thermal phosphoric acid in Hubei region was around 6,700-7,000 RMB/ton, and the ex factory price of 85% thermal phosphoric acid in Sichuan region was around 6,600-6,800 RMB/ton. The domestic market price for 85% wet process phosphoric acid was around 6,850-7,250 RMB/ton.

In terms of cost

In terms of raw material phosphorus yellow: This week, the market price of phosphorus yellow has shown a strong upward trend. Due to equipment maintenance in some enterprises, the supply of phosphorus yellow in the market has decreased. Due to tight supply, the market price of phosphorus yellow has risen, and manufacturers were mainly reluctant to sell. Downstream procurement was relatively cautious, with a focus on small quantities of goods. It is expected that domestic phosphorus yellow prices will remain stable and rise in the short term.

Raw material phosphate rock market: The phosphate rock market has remained stable this week, maintaining a high and steady operation. As of January 7th, the market supply was still tight, downstream demand was stable, and market trading was good. It is expected that domestic phosphate rock prices will continue to operate steadily in the short term.

Supply and demand side

This week, the supply and demand balance in the phosphoric acid market has not experienced significant fluctuations. Downstream on-demand procurement, market trading atmosphere was light. As of January 7th, the market supply was stable, and there was no significant change in the supply and demand side.

Market outlook

SunSirs’ phosphoric acid analyst believes that the phosphoric acid market trend has been upward recently. The raw material phosphorus yellow market was strengthening, and cost support was increasing. Downstream demand was stable, with primary support for essential needs. It is expected that the short-term phosphoric acid market will mainly follow the continued rise in raw material prices.

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