SunSirs: Domestic Phosphoric Acid Market Was Stalemate and Consolidated (September 19-25)

Price trend

According to the Commodity Market Analysis System of SunSirs, as of September 25th, the reference average price of 85% industrial grade phosphoric acid in China was 6,800 RMB/ton, which was stable compared to the reference average price of 6,800 RMB/ton on September 19th.

According to the Commodity Market Analysis System of SunSirs, as of September 25th, the reference average price of 85% wet process phosphoric acid in China was 6,966 RMB/ton, which was 0.95% lower than the reference average price of 7,033 RMB/ton on September 19th.

Analysis review

This week, the domestic phosphoric acid market experienced narrow fluctuations. As of September 25th, the market price of 85% industrial phosphoric acid in Hubei region was around 6,800-7,000 RMB/ton, and the market price of 85% thermal phosphoric acid in Sichuan region was around 6,700-6,900 RMB/ton. The domestic market price for 85% wet process phosphoric acid was around 6,950-7,050 RMB/ton.

Cost side

In terms of raw material phosphorus yellow: This week, the price of raw material phosphorus yellow had decreased, leading to a lack of market confidence and a poor trading atmosphere. The shipment of phosphorus yellow was not smooth before the holiday, and downstream price cutting procurement was the main reason. It is expected that the short-term phosphorus yellow market will continue to weaken and decline.

Raw material phosphate rock market: This week, the market price of phosphate rock remained stable at a high level, with tight supply in some areas, and the main focus was on issuing preliminary orders. It is expected that domestic phosphate rock prices will remain stable in the short term.

Supply and demand side

This week, the supply and demand in the phosphoric acid market were relatively balanced. There was temporarily no significant change in market supply, downstream purchases were made on demand, and the enthusiasm for receiving goods was average. The prices of some phosphoric acid enterprises had slightly decreased, and the market was in urgent need of support. It is expected that there will be no significant fluctuations in short-term supply and demand.

Market outlook

SunSirs’ phosphoric acid e analyst believes that the phosphoric acid market had been stagnant and consolidating recently. Due to the decrease in the price of raw material phosphorus yellow, some phosphoric acid manufacturers have made slight adjustments. As of September 25th, cost support was weakening, but pre holiday demand remained. It is expected that the short-term phosphoric acid market price will remain stagnant and consolidate mainly.

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