Price trend

According to the commodity market analysis system of SunSirs, as of August 19, the domestic reference average price for 85% industrial-grade thermal phosphoric acid stood at 8,625 RMB/ton; compared to the reference average price of 8,675 RMB/ton on August 11, the domestic market price fell by 0.58%.

Market analysis

Market Overview

In mid-August, phosphoric acid prices saw a slight decline. With the market for raw materials—yellow phosphorus and sulfur—weakening, cost support diminished, causing phosphoric acid prices to track the downward trend of raw materials. Operating rates among producers remained stable, and the market currently sees balanced supply and demand; however, downstream purchasing is limited to immediate needs, trading activity is sluggish, and demand requires improvement. As of August 19, domestic market quotes for 85% industrial-grade thermal phosphoric acid hovered around 8,200-9,500 RMB/tonne, while quotes for 85% wet-process phosphoric acid ranged from approximately 8,100 to 9,000 RMB/tonne.

Regarding costs:

In mid-August, market prices for raw materials—yellow phosphorus and sulfur—trended downward. Trading in the yellow phosphorus market is currently sluggish, with transaction price levels shifting lower; prices are expected to fluctuate within a narrow range in the short term. The sulfur market remains quiet, characterized by a prevailing wait-and-see attitude and a generally cautious stance among downstream buyers.

Market Outlook:

Analysts at SunSirs observe that the phosphoric acid market has recently been trending downward. Due to insufficient cost support and limited market demand, trading activity remains lackluster. Prices are expected to fluctuate at the lower end of the range in the short term.

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