Price trend

According to the commodity market analysis system of SunSirs, as of July 7, the reference average market price for domestic 85% industrial-grade thermal phosphoric acid stood at 9,262 RMB/ton; compared to the reference average price of 9,600 RMB/ton on July 1, the domestic market price fell by 3.52%.

Market analysis

During the first week of July, phosphoric acid prices trended downward due to market weakness. Prices for raw materials—yellow phosphorus and sulfur—continued to decline, offering insufficient cost support, which caused phosphoric acid prices to follow suit. While production rates remained stable, the market currently faces an oversupply; downstream buyers are purchasing only as needed, resulting in sluggish trading activity where most transactions are negotiated on a case-by-case basis.

Market Trends

As of July 7, domestic market quotes for 85% industrial-grade thermal phosphoric acid ranged from approximately 8,600 to 9,950 RMB/ton, while quotes for 85% wet-process phosphoric acid ranged from approximately 8,400 to 11,500 RMB/ton.

Regarding costs:

During the first week of July, market prices for raw materials—yellow phosphorus and sulfur—trended downward. Market supply increased as some yellow phosphorus production facilities resumed operations. Currently, trading in the yellow phosphorus market is sluggish, with a prevailing bearish sentiment. Trading activity in the sulfur market is also lackluster; downstream buyers remain cautious due to high price levels.

Market Outlook

Analysts at SunSirs observe that the phosphoric acid market has recently been trending downward. Weakened cost support and insufficient market demand have fostered a market sentiment of "buying on the rise but holding off on the decline." Prices are expected to fluctuate at the lower end of the range in the short term.

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