Price trend

According to the SunSirs Commodity Market Analysis System, the benchmark average price for domestic 85% thermal-process phosphoric acid stood at 10,375 RMB/ton on May 29. Compared to the benchmark average price of 8,400 RMB/ton recorded on May 1, prices in the domestic thermal-process phosphoric acid market rose by 23.51% this month.

According to the SunSirs Commodity Market Analysis System, on May 29, the benchmark average price for domestic 85% wet-process phosphoric acid stood at 11,025 RMB/ton. Compared to the benchmark average price of 8,800 RMB/ton recorded on May 1, domestic wet-process phosphoric acid prices rose by 25.28% this month.

Market Analysis

Market Overview

The domestic phosphoric acid market witnessed a significant surge this month. Driven by strengthening prices for the raw materials—yellow phosphorus and sulfur—and the resulting increase in cost support, the phosphoric acid market trended upward in tandem with raw material market movements. As of May 29, domestic market quotations for 85% industrial thermal-process phosphoric acid stood at approximately 10,000–11,200 RMB/ton, while quotations for 85% wet-process phosphoric acid ranged from roughly 10,550 to 11,500 RMB/ton.

Regarding Costs

Raw Material: Yellow Phosphorus. This month, supplies in the yellow phosphorus market have been tight, leading to increased trading activity and strengthening transaction prices; manufacturers have largely been reluctant to sell. Raw Material: Sulfur. This month, the sulfur market faced tight supplies, which drove up prices for wet-process purified phosphoric acid. In the short term, raw material prices for phosphoric acid are expected to fluctuate at elevated levels.

Market Outlook

According to analysts at SunSirs specializing in phosphoric acid, market prices have recently been trending upward. Driven by tight raw material supplies and strong cost support, the phosphoric acid market has experienced a robust surge. In the short term, the domestic phosphoric acid market is expected to maintain a predominantly strong trajectory.

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