SunSirs: The Phosphoric Acid Market Rose First and Then Fell in July

Price trend

According to the commodity market analysis system of SunSirs, the average reference price of domestic 85% industrial-grade phosphoric acid was 6,690 RMB/ton on July 30, and the average reference price of domestic 85% industrial-grade phosphoric acid was 6,690 RMB/ton on July 1. The price of domestic 85% industrial-grade phosphoric acid remained stable this month.

Analysis review

This month, the domestic phosphoric acid market saw an initial rise followed by a decline. In the first half of the month, phosphoric acid prices rose. The price of raw material phosphorus yellow increased, increasing cost support. Trading in the phosphoric acid market was stable, with an increase in downstream inquiries. Later in the month, phosphoric acid prices fell. Raw material phosphorus yellow prices weakened, weakening cost support. Trading in the phosphoric acid market was sluggish, with downstream demand for replenishment.

Market Conditions

As of July 30, the ex-factory price of 85% thermal phosphoric acid in Hubei Province was approximately 6,300-6,750 RMB/ton, the ex-factory price of 85% thermal phosphoric acid in Sichuan Province was approximately 6,350-6,800 RMB/ton, and the ex-factory price of 85% thermal phosphoric acid in Yunnan Province was approximately 6,600 RMB/ton. The domestic market price of 85% wet-process phosphoric acid was approximately 6,350-7,450 RMB/ton.

Cost side

phosphorus yellow raw material market: This month, the phosphorus yellow market saw an initial rise followed by a decline. In the first half of the month, phosphorus yellow supply was tight, with manufacturers reluctant to sell, leading to rising transaction prices. In the second half of the month, market activity weakened, with downstream suppliers cautiously purchasing and a bearish outlook prevailing. Consequently, transaction prices weakened and declined.

Future outlook:

SunSirs' phosphoric acid analysts believe the recent phosphoric acid market has been stable but slightly weaker. Poor raw material prices and insufficient cost support have led to a growing wait-and-see attitude in the market. It is expected that the domestic phosphoric acid market will be consolidated and weaker in the short term.

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