Phosphoric acid supply is tight and prices hit new highs

This week Phosphoric Acid prices continue to break through the peak, the main reason is still the raw material yellow phosphoric acid up to drive its rally. In recent days, since the Yunnan Development and Reform Commission issued the "double control" notice, the panic in the phosphating site will continue to rise, some enterprises on the early raw material procurement is too cautious, resulting in production difficulties and raw materials are hard to find.

 At the same time, the downstream phosphate and terminal enterprises are also suffering, part of the terminal enterprises also due to the high price of raw materials, temporarily stop to wait and see. In the current form, the phosphating market has not seen the end of the rally, and in the market supply is in constant shortage of phosphoric acid after the city still has upward space.

Since September, the thermal Phosphoric Acid market has broken through expectations, with the increase of 4000-6000 yuan in various places. The market price is more chaotic and fluctuates greatly.  Due to the tight supply of raw materials, manufacturers start work or continue to be affected, quotation enterprises continue to reduce, only a few enterprises have reference prices.  At present, the market reference price of phosphoric acid is 13500-16000 CNY/ton, and the trend continues to rise.  The above is the mainstream reference price, order subject to transaction.  

Wet purification acid in recent months is also rapid rise, the price has broken through ten thousand yuan mark, and for different industries and manufacturers to take a single discussion.  Today, The price of Wengfu Group has been greatly adjusted, and the average price of each region is above 10,000 yuan. However, due to the influence of environmental protection and other factors, the commencement of some factories has not reached the expectation, so it is even worse for the current phosphoric acid market, which already has a tight supply.

In recent months phosphoric acid market shock has a close relationship with yellow Phosphorus trend.  As the main upstream raw material of phosphoric acid, yellow phosphorus dominates the cost and start-up of phosphoric acid market.  Yellow phosphorus enterprises caused by long-term power brownouts to leak tight, still can be in a few month before, and the price under the premise of maintaining just need.

But the National Development and Reform Commission recently issued a "yunnan province energy conservation work leading group office of determined to do a good job of controlling energy consumption related notice, and has set up and the implementation on September 15, the majority of the yellow phosphorus enterprises temporarily seal single early sign the bill, as the downstream market of phosphoric acid,  Although the enterprises are actively looking for raw materials and negotiate with yellow phosphorus manufacturers, the situation is still difficult to change. Some manufacturers say that if yellow phosphorus supply is not timely, the production can only be maintained until this weekend or so.

On the whole, the root cause affecting the start of phosphoric acid market and the high price is yellow phosphorus, but the yellow phosphorus market is affected by various factors, and it is difficult to restore the normal market supply in a short time.  The phosphoric acid market, with nowhere to buy raw materials, will be increasingly tight to the downstream supply.

As the National Day holiday is approaching, the transportation of dangerous chemicals will be restricted on some roads at the end of the month. In this situation, some manufacturers will also choose to temporarily stop and wait, so the construction may face a large degree of reduction, and the supply will continue to shrink.