Market Overview

According to the commodity market analysis system of SunSirs, the average reference price of 85% industrial grade phosphoric acid in China was 6,940 RMB/ton on February 28, and 6,890 RMB/ton on February 1. The domestic phosphoric acid market price increased by 0.73% this month.

Market analysis

The domestic phosphoric acid market saw a generally strong upward trend in February. In the first half of the month, phosphoric acid prices fluctuated within a narrow range. The price of raw material phosphorus yellow remained relatively stable, resulting in no significant changes in costs. Trading in the phosphoric acid market was stable, with downstream demand driven by immediate needs. In the latter half of the month, phosphoric acid prices began to rise. The strengthening of raw material phosphorus yellow prices increased cost support, and the phosphoric acid market followed suit.

Market Situation

As of February 28th, the ex-factory price of 85% industrial phosphoric acid in Hubei province was around 6,900-7,250 RMB/ton, while in Sichuan province it was around 6,900-7,200 RMB/ton. The domestic market price for 85% wet-process phosphoric acid was around 6,950-7,500 RMB/ton.

Cost Aspects

Raw material phosphorus yellow market: The phosphorus yellow market saw a general upward trend in February. In the first half of the month, the market fluctuated narrowly, with moderate trading activity. Towards the end of the month, phosphorus yellow supply tightened, market activity increased, and prices began to rise, with manufacturers reluctant to sell.

Market outlook

According to analysts at SunSirs, phosphoric acid prices were trending upward recently. Stronger raw material prices had increased cost support, leading to a more optimistic market sentiment. The domestic phosphoric acid market is expected to remain strong in the short term.

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