SunSirs: The Domestic Phosphoric Acid Market Was Stable (December 9-13)

Price trend

According to the Commodity Market Analysis System of SunSirs, as of December 13th, the reference average price of 85% thermal phosphoric acid in China was 6,680 RMB/ton, which was stable compared to the reference average price of 6,680 RMB/ton on December 9th.

According to the Commodity Market Analysis System of SunSirs, as of December 13th, the reference average price of 85% wet process phosphoric acid in China was 6,983 RMB/ton, which was stable compared to the reference average of 6,983 RMB/ton on December 9th.

Analysis review

Market side

Domestic phosphoric acid prices had been running steadily this week. As of December 13th, the ex factory price of 85% thermal phosphoric acid in Hubei region was around 6,650-6,950 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 6,650-7,100 RMB/ton.

In terms of cost

In terms of raw material phosphorus yellow: This week, the price of phosphorus yellow in the market had weakened and fallen. As of December 13th, there was a large supply in the market, and the enthusiasm for downstream procurement had weakened, resulting in a shift in the focus of market transactions. It is expected that domestic phosphorus yellow prices will weaken in the short term.

Raw material phosphate rock market: The phosphate rock market remained stable this week, maintaining a high and steady operation. As of December 13th, market trading was flat, and some regions had tight supply of goods. 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 balance in the phosphoric acid market had not experienced significant fluctuations. Downstream on-demand procurement led to a sluggish market transaction atmosphere. As of December 13th, the performance of terminal demand was poor, and there was no positive support for the supply and demand sides.

Market outlook

SunSirs’ phosphoric acid analyst believes that the phosphoric acid market has been steadily adjusting and operating in recent days. The market for raw material phosphorus yellow was weakening, and there was insufficient cost support. It is expected that the short-term thermal phosphoric acid market will continue to operate with weaker raw materials, while the wet process phosphoric acid market will mainly stabilize.

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