SunSirs: Supply and Demand Were Balanced, and Phosphoric Acid Prices Narrowly Fluctuated (February 18-25)

Price trend

According to the Commodity Market Analysis System of SunSirs, as of February 25th, the reference average price of 85% thermal phosphoric acid in China was 6,760 RMB/ton, which was 0.60% higher than the reference average price of 6,720 RMB/ton on February 18th.

According to the Commodity Market Analysis System of SunSirs, as of February 25th, the reference average price of 85% wet process phosphoric acid in China was 7,133 RMB/ton, which was stable compared to the reference average of 7,133 RMB/ton on February 18th.

Analysis review

Market side

This week, the domestic price of phosphoric acid mainly fluctuated slightly. As of February 25th, the ex factory price of 85% thermal phosphoric acid in Hubei region was around 6,600-7,000 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 6,650-7,300 RMB/ton.

In terms of cost

In terms of raw material phosphorus yellow: The market price of phosphorus yellow has fallen this week. As of February 25th, the supply of phosphorus yellow in the market was loose, and downstream demand for replenishment was high, resulting in low purchasing intentions and mostly low-priced transactions. Short term domestic phosphorus yellow prices are expected to remain weak.

Raw material phosphate rock market: The phosphate rock market has remained stable this week, maintaining a high and steady operation. As of February 25th, the market supply and demand were balanced, and market trading was still acceptable. It is expected that domestic phosphate rock prices will continue to operate steadily in the short term.

Supply and demand side

The supply and demand were balanced in the phosphoric acid market this week. As of February 25th, the supply of phosphoric acid in the market was stable, with stable shipments on the demand side and downstream replenishment mainly for urgent needs. It’s expected to maintain a balance between supply and demand in the short term.

Market outlook

The phosphoric acid analyst from SunSirs believes that the recent phosphoric acid market has experienced narrow fluctuations, with overall stability being the main factor. The price of raw material phosphorus yellow has decreased, and there was insufficient cost support. The market transaction atmosphere was good, and the transaction volume was still acceptable. It is expected that the short-term phosphoric acid market will mainly experience consolidation and operation.

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