In recent ten days, the phosphate market price in China has shown a strong increase

May 22nd, news:

I. Price Trends

According to the commodity market analysis system, as of May 22, the reference average price of 85% industrial thermal phosphoric acid in the Chinese market was 9,700 CNY per ton, an increase of 12.53% from the reference average price of 8,620 CNY per ton on May 12.

II. Market Analysis

In the past ten days, the market price of phosphoric acid has shown a strong upward trend. With the increase in the price of raw material yellow phosphorus, under cost pressure, the price of phosphoric acid has continued to rise following the raw material prices. The operating rates of enterprises remain stable, and downstream rigid demand procurement is mainly conducted on a case-by-case negotiation basis. Currently, the market sentiment is predominantly optimistic.

Market Conditions

As of May 22, the market price for 85% thermal process phosphoric acid in China is around 9,500-10,000 CNY per ton, and the market price for 85% wet process phosphoric acid in China is around 9,600-10,200 CNY per ton.

Cost aspect

Over the past ten days, the market trend for yellow phosphorus has been strong and upward, with production rates in Yunnan and Guizhou regions around 60%. Currently, the market supply is tight, and manufacturers are mainly holding firm on prices. As the price of yellow phosphorus rises to high levels, downstream buyers are being cautious and mainly seeking lower-priced deals. As of May 22, the yellow phosphorus market in Yunnan and Guizhou regions is operating at high levels, with a reference price of around 33,962 CNY per ton, and actual transactions are negotiated on a case-by-case basis.

III. Future Market Forecast

Phosphate analysts believe that the recent trend in the phosphate market in China has been mainly upward. The increase in costs has pushed up phosphate prices, and the market sentiment of buying on rising prices rather than falling ones has increased. It is expected that phosphate prices in China will continue to rise strongly in the short term.