Price trends

According to the commodity market analysis system of SunSirs, the domestic reference average price for 85% thermal-process phosphoric acid was 8,562 RMB/ton on August 31; compared to the reference average price of 8,725 RMB/ton on August 1, the domestic market price for this product fell by 1.86% over the month.

According to the commodity market analysis system of SunSirs, the domestic reference average price for 85% wet-process phosphoric acid was 8,416 RMB/ton on August 31. Compared to the reference average price of 8,850 RMB/ton on August 1, the domestic price of 85% wet-process phosphoric acid fell by 4.90% over the month.

Market Analysis

Market Conditions

The domestic phosphoric acid market trended downward this month. Cost factors showed a divergence: the price of yellow phosphorus (a raw material) rose, while the price of sulfur (another raw material) fell. Supply and demand remained stable; downstream buyers purchased only as needed, and a wait-and-see sentiment prevailed, resulting in limited new order activity. As of August 31, market quotes for domestic 85% thermal-process phosphoric acid ranged from approximately 8,100 to 9,000 RMB/ton, while quotes for domestic 85% wet-process phosphoric acid ranged from approximately 8,150 to 9,000 RMB/ton.

Regarding costs:

Market trends for raw material yellow phosphorus: Prices rose this month amidst tight supply and increased trading volume, with manufacturers pushing prices up. Market trends for raw material sulfur: The sulfur market weakened this month, with prices continuing to decline; downstream purchasing interest was lackluster, and market trading remained sluggish.

Market Outlook

Analysts at SunSirs observe that phosphoric acid market prices have recently been consolidating within a stable range. Currently, market demand is sluggish, cost-side trends are divergent, and market sentiment has become increasingly cautious. In the short term, the domestic phosphoric acid market is expected to fluctuate within a narrow range.

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