February phosphate market trend shows strong increase in China

February 28 news

I. Price Trends

According to the commodity market analysis system, on February 28, the average reference price for 85% industrial-grade phosphoric acid in China was 6,940 CNY per ton, while on February 1, the average reference price for 85% industrial-grade phosphoric acid in China was 6,890 CNY per ton. This month, the market price of phosphoric acid in China increased by 0.73%.

2. Market Analysis

This month, the Chinese phosphoric acid market showed a strong upward trend. In the first half of the month, the price of phosphoric acid mainly fluctuated within a narrow range. The price of the raw material, yellow phosphorus, did not change much, and there was no significant change in the cost. The trading in the phosphoric acid market remained stable, with downstream rigid demand procurement. In the second half of the month, the price of phosphoric acid began to rise. The price of yellow phosphorus strengthened, increasing the cost support, and the phosphoric acid market followed the upward trend of the raw material.

Market Conditions

As of February 28, the ex-factory quotation for 85% industrial phosphoric acid in Hubei region is around 6,900-7,250 CNY/ton, and in Sichuan region, it is around 6,900-7,200 CNY/ton. The market quotation for 85% wet-process phosphoric acid in China is around 6,950-7,500 CNY/ton.

Cost aspect

Raw material yellow phosphorus market trend. This month, the yellow phosphorus market in China mainly showed an upward trend. In the early to mid-month, the yellow phosphorus market in China experienced minor fluctuations, with a moderate trading atmosphere. In the late month, the supply of yellow phosphorus in the Chinese market became tight, and trading activities increased. The transaction prices of yellow phosphorus started to strengthen, with manufacturers mainly holding back from selling.

III. Future Market Forecast

Phosphate analysts believe that the market price trend of phosphoric acid has been on the rise recently. With the strengthening of raw material prices, cost support has increased, leading to a more optimistic outlook in the phosphoric acid market. It is expected that the short-term phosphoric acid market in China will mainly show a strong trend.