1、 Price trend

According to the Commodity Market Analysis System of Business Society, the reference average price of 85% hot process phosphoric acid in China was 6680 yuan/ton on May 1st. On May 29th, the reference average price of 85% hot process phosphoric acid in China was 6600 yuan/ton. This month, the domestic price of hot process phosphoric acid decreased by 1.20%.

According to the Commodity Market Analysis System of Business Society, the reference average price of 85% wet process phosphoric acid in China was 6950 yuan/ton on May 1st, and 6816 yuan/ton on May 29th. This month, the domestic wet process phosphoric acid price has dropped by 1.92%.

2、 Market analysis

The market price of phosphoric acid has dropped this month. In the first half of May, the price of phosphoric acid showed a weak decline. The price of raw material yellow phosphorus has been lowered, cost support has weakened, and the price of thermal phosphoric acid has followed the trend of raw materials downward. Downstream rigid procurement, with a resistance to high prices. The demand for wet process phosphoric acid in the market is stable, and the market is steadily consolidating. In the second half of May, the price of phosphoric acid slightly decreased after an increase. The high prices of raw materials have been consolidated, with support from the cost side. Downstream procurement is mainly based on demand, with limited new orders in the market. As of May 29th, the factory price of 85 thermal process phosphoric acid in Hubei region is around 6500-6800 yuan/ton, and the factory price of 85 thermal process phosphoric acid in Sichuan region is around 6400-6700 yuan/ton. The domestic market quotation for 85 wet process phosphoric acid is around 6300-7200 yuan/ton.

Market for raw material yellow phosphorus. In May, the price of yellow phosphorus in the market fell, and the overall trading situation in the yellow phosphorus market was average. In the first half of the year, the domestic yellow phosphorus market was light, with a downward focus on the market. Downstream procurement was mainly driven by price pressures, and many manufacturers did not provide external quotations, with negotiations being the main focus. At present, the trading situation in the yellow phosphorus field is still good in the middle of the month. The manufacturer mainly issues preliminary orders, and the inventory is controllable. Yellow phosphorus enterprises mainly raise prices. In the latter half of the month, the price of yellow phosphorus in the market fluctuated. High end prices will be lowered, while low-end prices will be adjusted. The overall procurement is still relatively cautious, with a stalemate between upstream and downstream operations. As of now, the market price for yellow phosphorus is around 22500-22900 yuan/ton, and the actual transaction is negotiable.

Market for raw material phosphate rock. The phosphate ore market slightly improved in May. The price increase within the month is 0.58%. At present, the trading atmosphere inside the phosphate ore field is mild, and the supply and demand sides provide stable market support. In the short term, the domestic phosphate ore market will mainly operate in a stable, medium, and strong manner. As of May 29th, the domestic market price for 30 grade phosphate ore is around 1030-1100 yuan/ton.

3、 Future Market Forecast

The phosphoric acid analyst from Business Society believes that the phosphoric acid market has been steadily consolidating and operating recently. At present, the price of raw material yellow phosphorus is stagnant and consolidating, with average cost support. There is insufficient trading in the hot process phosphoric acid market, and there is still support for the demand side of wet process phosphoric acid. It is expected that the short-term phosphoric acid market will be weak and mainly operated through consolidation.