December Phosphate Market Trends Fluctuate and Decline in China

December 31st News

I. Price Trends

According to the commodity market analysis system, on December 31, the reference average price of 85% industrial-grade phosphoric acid in China was 6,840 CNY/ton, and on December 1, the reference average price of 85% industrial-grade phosphoric acid in China was 6,880 CNY/ton. This month, the price of 85% industrial-grade phosphoric acid in China fell by 0.58%.

II. Market Analysis

Market Conditions

This month, the Chinese phosphate market prices have experienced a slight fluctuation and decline. The supply and demand in the phosphate market are balanced, with stable trading activities. As of December 31, the ex-factory quotation for 85% industrial phosphoric acid in Hubei region is around 6700-7000 CNY/ton, in Sichuan region it is around 6700-7000 CNY/ton, and in Yunnan region it is around 6700-6900 CNY/ton.

Raw Material Market Trends

Raw material yellow phosphorus market trend. This month, the yellow phosphorus market first rose and then fell. In the first half of the month, the supply of yellow phosphorus in the Chinese market was tight, with manufacturers mainly holding back from selling, leading to a rise in the price of yellow phosphorus. In the second half of the month, there was insufficient demand for yellow phosphorus, and the trading atmosphere was cold. Downstream buyers mostly pressured for lower prices, and suppliers reduced prices to facilitate sales.

III. Future Market Forecast

Phosphate analysts believe that the recent phosphate market trend is mainly characterized by consolidation. The price of raw material yellow phosphorus has fallen, weakening the cost support. Currently, the trading atmosphere in the phosphate market is moderate, with downstream sectors replenishing stocks as needed. It is expected that the phosphate market in China will experience minor fluctuations in the short term.