Price trend

According to the SunSirs Commodity Market Analysis System, as of May 22, the average reference price for domestic 85% industrial thermal-process phosphoric acid stood at 9,700 RMB/ton. Compared to the average reference price of 8,620 RMB/ton recorded on May 12, prices in the domestic phosphoric acid market have risen by 12.53%.

Market Analysis

Over the past ten days, prices in the phosphoric acid market have trended upward. With the price of the raw material—yellow phosphorus—on the rise, phosphoric acid prices have followed suit under cost-side pressure. Production rates at manufacturing facilities remained stable, while downstream sectors were engaging in procurement driven by essential demand; transactions were primarily being negotiated on a case-by-case basis.As of May 22, market sentiment remained predominantly optimistic.

Market Trends

As of May 22, domestic market quotes for 85% industrial thermal-process phosphoric acid stood at approximately 9,500–10,000 RMB/ton, while quotes for 85% wet-process phosphoric acid were around 9,600–10,200 RMB/ton.

Regarding costs

Over the past ten days, market prices for yellow phosphorus have trended upward. Operating rates in the Yunnan-Guizhou region stand at approximately 60%. Market supply is tight, and manufacturers are primarily focused on holding prices firm. As yellow phosphorus prices continue to rise from already elevated levels, downstream buyers are exercising caution in their procurement, largely seeking out lower-priced deals. As of May 22, the yellow phosphorus market in the Yunnan-Guizhou region remains at a high operational level, with a reference price of approximately 33,962 RMB/ton; actual transaction prices are being negotiated on a case-by-case basis.

Market Outlook

According to analysts at SunSirs specializing in phosphoric acid, the market has recently exhibited a predominantly upward trend. Rising production costs are driving phosphoric acid prices higher, fostering a market sentiment characterized by a preference for "buying on the rise" rather than "buying on the dip." Consequently, prices in the phosphoric acid market are expected to maintain a strong, upward trajectory in the short term.

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