SunSirs: Weakening Costs Led to a Slight Decline in the Phosphoric Acid Market (November 14-20)

Price trend

According to the Commodity Market Analysis System of SunSirs, as of November 20th, the reference average price of 85% thermal phosphoric acid in China was 6,740 RMB/ton, which was 0.15% lower than the reference average price of 6,750 RMB/ton on November 14th.

According to the Commodity Market Analysis System of SunSirs, as of November 20th, the reference average price of 85% wet process phosphoric acid in China was 7,000 RMB/ton, which was stable compared to the reference average of 7,000 RMB/ton on November 14th.

Analysis review

Market situation

This week, the domestic phosphoric acid market prices have slightly declined. As of November 20th, the ex factory price of 85% thermal phosphoric acid in Hubei region was around 6,600-6,900 RMB/ton, and the ex factory price of 85% thermal phosphoric acid in Sichuan region was around 6,750-6,900 RMB/ton. The domestic market price for 85% wet process phosphoric acid was around 6,950-7,150 RMB/ton.

In terms of cost

In terms of raw material phosphorus yellow: This week, the price of phosphorus yellow in the market was weak and declining. Downstream price cutting procurement, cautious in purchasing goods. As of November 20th, the market transaction atmosphere was quiet, and new orders were limited in volume. It is expected that the domestic price of phosphorus yellow will remain weak in the short term.

Raw material phosphate rock market: This week, the phosphate rock market has remained stable, maintaining a high level of temporary stability. Downstream on-demand procurement ensured stable shipment of phosphate rock. 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 of the phosphoric acid market were balanced, with the main focus on issuing preliminary orders. Downstream procurement was on-demand, with a strong wait-and-see attitude. There was temporarily no significant fluctuation in short-term market supply and demand.

Market outlook

SunSirs’ phosphoric acid analyst believes that the phosphoric acid market has been weak recently. The price of raw material phosphorus yellow has been lowered, and cost support has weakened. Downstream demand was dominant, with few new orders in the market and average trading. It is expected that the short-term phosphoric acid market will observe raw material prices and focus on narrow range consolidation and operation.

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