1、 Price trend

According to the Commodity Market Analysis System of Shengyishe, as of December 18th, the reference average price of 85% thermal phosphoric acid in China was 6800 yuan/ton, which is a decrease of 2.30% compared to the reference average price of 6960 yuan/ton on December 11th.

According to the Commodity Market Analysis System of Shengyishe, as of December 18th, the reference average price of 85% wet process phosphoric acid in China was 6733 yuan/ton, which is 6833 yuan/ton compared to the reference average price on December 11th. This week, the domestic wet process phosphoric acid price decreased by 0.73%.

2、 Market analysis

The market price of phosphoric acid has fallen this week. The price of raw material yellow phosphorus has been lowered, weakening cost support. The operating rate of phosphoric acid enterprises is stable, the demand in the phosphoric acid market is sluggish, and the trading volume is limited. The company’s quotation has been lowered, and the transaction volume is mainly negotiated on a single basis. As of December 18th, the factory price of 85% thermal phosphoric acid in Yunnan region is around 7100 yuan/ton, and the factory price of 85% thermal phosphoric acid in Hubei region is around 6300-6800 yuan/ton. The domestic market quotation for 85% wet process phosphoric acid is around 6000-7550 yuan/ton.

This week, the focus of the domestic yellow phosphorus market continued to decline, and the overall market trading situation was average. The operating rate in the downstream market has weakened, leading to a pressure on prices and a focus on demand. Yellow phosphorus enterprises are cautious in their quotations, issuing more preliminary orders, and not providing external quotations for new orders. Only one can be negotiated. The price of yellow phosphorus in the market is relatively chaotic, with both high-end and low-end prices coexisting. As of now, the mainstream quotation for Yunnan yellow phosphorus is around 24500 yuan/ton; The quotation for Guizhou yellow phosphorus is around 24500 yuan/ton, while the quotation for Sichuan yellow phosphorus is around 25000 yuan/ton.

In terms of raw material phosphate ore, the overall domestic phosphate ore market this week was mainly stable and consolidating after a decline, with little overall fluctuation in the market. 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 18th, the domestic price of 30 grade phosphate ore is around 1020-1080 yuan/ton.

3、 Future Market Forecast

According to analysts from Business Society, the phosphoric acid market has recently weakened and prices have fluctuated downward. The market trend of raw material yellow phosphorus is not good, and the cost support for phosphoric acid is insufficient. At present, terminal demand is limited, market transactions are light, and downstream and dealers hold a buying up but not buying down mentality. It is expected that the short-term phosphoric acid market price will be weak and decline.