I. Price Trend
According to the commodity market analysis system of Business Society, the average reference price for 85% industrial-grade phosphoric acid in China was 6,890 yuan/ton on January 29, compared to 6,840 yuan/ton on January 1. The price of 85% industrial-grade phosphoric acid in China increased by 0.73% this month.
II. Market Analysis
Market Conditions
This month, the domestic phosphoric acid market experienced stable to rising prices. The increase in the price of raw material yellow phosphorus has strengthened cost support. The supply and demand of the phosphoric acid market remained balanced, with stable trading activities. As of January 29, the ex-factory quotations for 85% industrial phosphoric acid in Hubei region ranged from 6,800 to 7,000 yuan/ton, in Sichuan region from 6,750 to 7,000 yuan/ton, and in Yunnan region from 6,700 to 7,000 yuan/ton.
Raw Material Market
Yellow Phosphorus Market
This month, the yellow phosphorus market showed a strong upward trend. The supply of yellow phosphorus was tight, providing support from the supply side. Downstream buyers replenished stocks as needed, while manufacturers were reluctant to sell, leading to a favorable trading atmosphere in the yellow phosphorus market. Demand is expected to gradually increase as the Spring Festival approaches.
III. Future Outlook
Phosphoric acid analysts at Business Society believe that the market trend for phosphoric acid will mainly be upward in the near term. The price of raw material yellow phosphorus remains firm, providing continued support from the cost side. Currently, trading in the phosphoric acid market is relatively active, with downstream buyers having pre-holiday stocking needs. It is expected that the domestic phosphoric acid market will maintain a strong performance in the short term.
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