Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the price center of the Yunnan and Guizhou phosphorus yellow market this week was upward. Last Thursday, the average price of phosphorus yellow was 21,900 RMB/ton, and this Thursday's average price was 23,350 RMB/ton. The price increased by 6.62% during the week.

Analysis review

This week, the price center of Yunnan and Guizhou phosphorus yellow market was upward, and prices had stabilized over the weekend. As of 8th, the overall market trading situation of phosphorus yellow was light, with limited actual transactions. The start of construction in the phosphorus yellow market was still at a low level, and some enterprises had postponed producing. Downstream enterprises were cautious in procurement, with poor enthusiasm for procurement, maintaining a wait-and-see attitude, prioritizing procurement on demand, and often suppressing price inquiries. The manufacturer mainly issued preliminary orders, but there was not much inventory on site, and they were reluctant to sell at low prices, resulting in a relatively stagnant supply and demand. The enterprise did not provide external quotations for the time being, and discussed on the actual order in detail. As of 8th, the quotation was around 23,200-23,500 RMB/ton, and the actual transaction was subject to negotiation.

In terms of phosphate rock, the domestic phosphate rock market temporarily stabilized this week. As of June 8, 2023, the reference average price of 30% grade phosphate rock in China was 1,010 RMB/ton. As of June 8, the trading atmosphere inside the phosphate rock field had generally boosted, but the recent rebound in downstream product prices of phosphate rock was expected to give a certain positive boost to the phosphate rock market. The phosphate rock data analyst from SunSirs believes that in the short term, the domestic phosphate rock market will mainly adjust and operate in a range, and the specific trend needs to pay more attention to changes in supply and demand news.

In terms of coke, according to the commodity market analysis system of SunSirs, the average price of coke last Thursday was 1,796 RMB/ton, while this Thursday's average price was 1,746 RMB/ton. During the week, the price decreased by 2.78%. As of June 8, the supply of coke was stable. In terms of demand, it had entered a seasonal off-season, and the profitability of steel mills had declined, and the purchases of coke were mainly based on demand. Some manufacturers with sufficient inventory had controlled the arrival of goods. They only maintained on-demand replenishment of coke. Overall, in the off-season downstream, there was insufficient demand expectation and the overall atmosphere of the coke market was weak. It is expected that the operation will remain weak in the short term. In the future, the focus will be on the operating situation of coking enterprises, the price trend of coking coal, and the inventory situation of coke in various links.

In terms of phosphoric acid, the market price of phosphoric acid had slightly increased this week. Last Thursday, the average price of phosphoric acid was 6,220 RMB/ton, while this Thursday's average price was 6,340 RMB/ton. During the week, the price increased by 1.93%. This week, the phosphoric acid market followed the rise of phosphorus yellow prices, but the raw material prices stabilized over the weekend. The upward momentum for phosphoric acid was insufficient, and there was a strong wait-and-see sentiment. It is expected that in the short term, the price of the phosphoric acid market will mainly consolidate and operate in a narrow range.

Market outlook

Phosphorus yellow analysts from SunSirs believe that as of June 8th, upstream phosphate rock prices had temporarily stabilized, coke prices had decreased, and cost support was weak. The downstream phosphoric acid market had slightly increased, but market trading was still relatively light, with limited actual transactions. Overall, the upstream and downstream markets were showing a cautious wait-and-see trend. It is expected that in the short term, phosphorus yellow will mainly be consolidated, and there is a possibility of giving up profits for sales. Pay attention to changes in the news.

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