October Phosphate Market Trends: Initially Down, Then Up

October 30 report

I. Price Trends

According to the commodity market analysis system, on October 30, the reference average price of 85% industrial grade phosphoric acid in China was 6,630 CNY per ton, and on October 1, the reference average price of 85% industrial grade phosphoric acid in China was 6,670 CNY per ton. This month, the price of 85% industrial grade phosphoric acid in China fell by 0.60%.

II. Market Analysis

This month, the Chinese phosphoric acid market first declined and then rose. In the first half of the month, the phosphoric acid market was weak. The price of raw material yellow phosphorus decreased, leading to insufficient cost support, and the phosphoric acid market followed the downward trend of the raw material. There were fewer inquiries in the phosphoric acid market, and trading was light. In the second half of the month, the price of phosphoric acid in China increased. The price of raw material yellow phosphorus was raised, increasing the cost support. The market sentiment for phosphoric acid became more optimistic, and manufacturers mainly held firm on their prices.

Market Conditions

As of October 30, the ex-factory price of 85% thermal process phosphoric acid in Hubei region is around 6,300-6,700 CNY/ton, in Sichuan region it is around 6,250-6,700 CNY/ton, and in Yunnan region it is around 6,400 CNY/ton.

Raw Material Market

Raw material yellow phosphorus market trend. In the first half of this month, the price of yellow phosphorus in the Chinese market declined. The supply of yellow phosphorus was ample, and downstream buyers were mainly purchasing at lower prices to meet their needs. In the second half of the month, the price of yellow phosphorus in the Chinese market increased. There were fewer low-priced supplies in the market, manufacturers' quotes were firm, and transaction prices rose.

III. Market Forecast

Phosphate analysts believe that the phosphate market has recently shown a strong upward trend. The price of raw material yellow phosphorus has strengthened, providing support to the cost side, but the room for increase is limited. Currently, the phosphate market transactions are stable, with downstream demand being met through necessary restocking. It is expected that in the short term, the Chinese phosphate market will mainly maintain a strong and steady operation.