1、 Price trend

According to the Commodity Market Analysis System of Business Society, as of December 22, the reference average price of 85% thermal phosphoric acid in China was 6640 yuan/ton, which is a decrease of 2.35% compared to the reference average price of 6800 yuan/ton on December 18.

According to the Commodity Market Analysis System of Shengyishe, as of December 22, the reference average price of 85% wet process phosphoric acid in China was 6516 yuan/ton, which is 6783 yuan/ton compared to the reference average price on December 18. This week, the domestic wet process phosphoric acid price decreased by 3.93%.

2、 Market analysis

The market price of phosphoric acid has fallen this week. The price of raw material yellow phosphorus has been lowered, resulting in insufficient cost support. The operating rate of phosphoric acid enterprises is stable, market demand is sluggish, and trading is weak. The company’s quotation has been lowered, and the main focus is on single negotiation, with bearish sentiment in the market. As of December 22, the factory price of 85% thermal phosphoric acid in Yunnan region is around 6800 yuan/ton, and the factory price of 85% thermal phosphoric acid in Hubei region is around 6100-6900 yuan/ton. The domestic market quotation for 85% wet process phosphoric acid is around 5500-7250 yuan/ton.

This week, the market price of yellow phosphorus continued to decline, and the overall market trading situation was relatively light. The market operating rate has decreased this week, and some yellow phosphorus enterprises have suspended external quotations. However, downstream demand is poor, with low prices for procurement. Traders and downstream buyers are less proactive, and the focus of the on-site market continues to decline. Downstream procurement is more cautious, with limited new orders and a focus on rigid demand. As of now, the market price for yellow phosphorus is around 23500 yuan/ton, and the actual transaction is negotiable.

In terms of raw material phosphate ore, the overall domestic phosphate ore market has remained stable and operational this week. The overall supply side of phosphate ore is still slightly tight, and the supply side still provides some support to the market. The overall performance of downstream demand is average, with most downstream orders being for rigid needs. As of December 22nd, the domestic price of 30 grade phosphate ore is around 1020-1080 yuan/ton.

3、 Future Market Forecast

Business Society’s phosphoric acid analyst believes that the phosphoric acid market has been continuously weakening in recent days. The market trend of raw material yellow phosphorus is declining, and the cost support for phosphoric acid is insufficient. The terminal demand is limited, the market transactions are relatively low, and the mentality of downstream and distributors is unstable. It is expected that the short-term market price of phosphoric acid will continue to decline weakly.