Review of phosphate rock market in 2022

In 2022, China's phosphate rock market ushered in a year of continuous sharp rise. Since January 2022, the domestic market price of medium-high grade phosphate rock had started to move steadily upward. In 2022, the supply side of China's phosphate rock market continued to be tense, and the downstream demand side was also performing well, the market center of gravity continued to rise, and the overall growth of the phosphate rock market in 2022 reached 53.04%. The following is a detailed analysis of phosphate rock market in two stages:

Phase I (2022.01.01-2022.7.31)

In January 2022, on the eve of the Spring Festival, many mining enterprises stopped mining, the spot supply of phosphate rock in the site was tight, and the downstream stock was normal before the festival. In January, domestic phosphate rock rose 1.45%. After the Spring Festival in February, the supply of phosphate rock market continued to be tight, and the market price rose steadily, up 1.43% in February. In March and April, the terminal downstream phosphate fertilizer market gradually recovered. With the boost of downstream demand, the price of phosphate rock gradually increased, with a cumulative increase of 7.38% in March and April.

In May and June, the downstream phosphate fertilizer market ushered in the peak season. With the increase of demand, the supply of phosphate rock in the field was more tense, the spot circulation was less, and the operators were strongly reluctant to sell. Many large factories stopped the supply of goods to outside, mainly for their own use. Under the support of both supply and demand, the market price of phosphate rock started to rise widely, and the market price of 30% grade phosphate rock broke through the 1,000 RMB/ton mark, with a cumulative increase of 36.43% in two months. In July, the growth of domestic phosphate rock slowed down, and the demand of downstream phosphate fertilizer market weakened, but the supply side of phosphate rock remained tight, supporting the market focus to continue to rise slightly, and the phosphate rock rose 3.12% in July.

Phase II (2022.08.01-2022.12.31)

In the middle and first ten days of August, with the gradual weakening of the downstream phosphate fertilizer market, the atmosphere in the phosphate rock field was affected to some extent, and the operators’ mood were general. Although the phosphate rock market lacked strength to continue to rise, it was mainly supported by the supply side's continuous tension, and mining enterprises kept their prices stable.

Since late August, with the continuous decline of the phosphate rock market, the market price of medium-high grade phosphate rock in some regions of China started to decline slightly, but the supply side had always been tight, and some mining enterprises implemented pre-orders. Therefore, on the whole, the decline of the phosphate rock market was relatively slow. n November, supported by the recovery of the downstream phosphate fertilizer market, the overall phosphate rock market also slightly increased. From late August to the end of December, the domestic medium and high-end grade phosphate rock (30% grade) decreased by only 4%, and the overall increase was still more than 50% compared with the beginning of the year. As of December 31, the reference price of domestic 30% grade phosphate rock market was around 1,030-1,080 RMB/ton, and the specific price was also different from the original ore specification and powder ratio, and the specific price needed to be negotiated on a real basis.

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