July 7th news
I. Price Trends
According to the commodity market analysis system, as of July 7, the reference average price of 85% industrial thermal method phosphoric acid in China was 9,262 CNY/ton, a decrease of 3.52% from the reference average price of 9,600 CNY/ton on July 1.
II. Market Analysis
In the first week of July, the phosphate market prices in China showed a weak downward trend. The prices of raw materials, such as yellow phosphorus and sulfur, continued to decline, leading to insufficient cost support. As a result, phosphate prices followed the downward trend of raw material prices. The operating rates of enterprises remained stable, but the current phosphate market in China is oversupplied. Downstream buyers are purchasing based on their needs, and the trading atmosphere is quiet, with most transactions being negotiated on a case-by-case basis.
Market Conditions
As of July 7, the market price for 85% thermal process phosphate in China is around 8,600-9,950 CNY per ton, and the market price for 85% wet process phosphate in China is around 8,400-11,500 CNY per ton.
Cost aspect
In the first week of July, the market prices for raw materials such as phosphorus and sulfur showed a downward trend. Some phosphorus production facilities resumed operations, increasing market supply. Currently, the phosphorus market is experiencing weak trading, with a predominantly bearish sentiment. The sulfur market also has poor trading conditions, as high sulfur prices have led to a cautious attitude among downstream buyers.
3. Future Market Forecast
Phosphate analysts believe that the recent trend in the phosphate market in China has been mainly downward. With weakening cost support and insufficient market demand, the mentality of buying on rising prices and not on falling prices has increased. It is expected that phosphate prices in China will fluctuate weakly in the short term.
