January Phosphate Market Steady with an Uplift in China

January 29th News

I. Price Trends

According to the commodity market analysis system, on January 29, the reference average price of 85% industrial grade phosphoric acid in China was 6,890 CNY per ton, and on January 1, the reference average price of 85% industrial grade phosphoric acid in China was 6,840 CNY per ton. This month, the price of 85% industrial grade phosphoric acid in China increased by 0.73%.

II. Market Analysis

Market Conditions

This month, the price of phosphoric acid in China has steadily increased. The price of raw material yellow phosphorus has risen, increasing the cost support. The supply and demand for the phosphoric acid market are balanced, with stable market transactions. As of January 29, the ex-factory quotation for 85% industrial phosphoric acid in Hubei is around 6,800-7,000 CNY per ton, in Sichuan it is around 6,750-7,000 CNY per ton, and in Yunnan it is around 6,700-7,000 CNY per ton.

Raw Material Market

Raw material yellow phosphorus market trend. This month, the yellow phosphorus market in China showed a strong upward trend. The supply of yellow phosphorus in the Chinese market is tight, with support from the supply side. Downstream buyers are replenishing stocks as needed, while manufacturers are mainly holding back from selling, resulting in a good trading atmosphere in the yellow phosphorus market. As the Spring Festival approaches, demand is expected to gradually increase.

III. Future Market Forecast

Phosphate analysts believe that the recent trend in the phosphate market is mainly upward. The price of raw material yellow phosphorus remains firm, and cost support is still in place. Currently, the trading in the phosphate market is acceptable, and there is a demand for pre-holiday stockpiling from downstream sectors. It is expected that the short-term phosphate market in China will mainly show a strong trend.