SunSirs: The Cost Was Favorable, and the Market Price of Phosphoric Acid Rose
Price trend
According to SunSirs’bulk data list, the average domestic phosphoric acid price was 7,083.33 RMB/ton on August 25, an increase of 3.91% from the beginning of the week, an increase of 3.91% from the beginning of the month, and an increase of 47.06% from the same period last year.
Analysis review
Since entering August, the phosphoric acid market has been relatively calm, and some companies have adjusted their quotations within a narrow range and are actively shipping products. At the beginning of this week, the trading of raw material phosphorus yellow turned better, and the price rose to 28,000 RMB/ton. The phosphoric acid market was actively following up again. Most companies adjusted their prices at around 200-500 RMB/ton, a year-on-year increase of more than 47%. As of the 25th, the price of phosphoric acid was as high as 8,000 RMB/ton, and the center of gravity moved up significantly. Downstream procurement was still cautious, and demand increased compared with the previous period, but the new order transactions were still not good. With the recent cost support, thermal phosphoric acid and wet-process phosphoric acid have shown an upward trend as a whole, which tends to rise but hardly fall. According to the monitoring of SunSirs, on the 25th, the phosphoric acid quotation in Jiangsu area was 5,900-7,500 RMB/ton, the quotation of phosphoric acid in Hebei area was 7,600-8,400 RMB/ton, the quotation of phosphoric acid in Hubei area was 8,000-8,100 RMB/ton, the quotation of phosphoric acid in Shandong area was around 7,500-7,600 RMB/ton, and the price of phosphoric acid in Yunnan was around 7,700 RMB/ton. Phosphoric acid prices have been raised everywhere.
Phosphate rock, recently, the domestic phosphate rock market has continued to operate at a high level. At present, the overall supply of phosphate rock market is tight, and the market continues to supply orders from old customers. The downstream stocking of phosphate rock is relatively good, and the market trading atmosphere is fair. Most of the mining companies maintain high prices firmly.
Phosphorus yellow, on August 25, the reference price of phosphorus yellow was 26,000.00 RMB/ton, which was down 6.02% compared with the price on August 1 (27,666.67 RMB/ton). The trading atmosphere on the market is improving and the supply of goods is relatively tight. The price of upstream phosphate rock has been raised, and the price of phosphoric acid in the downstream has risen. Overall, market confidence is good, with strong upstream and downstream support. It is expected that the market price of phosphorus yellow is expected to rise in the short term.
Ammonium phosphate, although the transaction in the ammonium phosphate market is flat, the cost is favorable due to rising raw material prices. At present, there are still orders to be sent, and the supply is insufficient, and the price of ammonium phosphate is always high and firm. It is expected that the ammonium phosphate market will continue to run at a high level and run smoothly in the short term.
Market outlook
The phosphoric acid analyst of SunSirs believes that the current price of raw materials is rising again. Under the support of costs, the phosphoric acid market has generally risen, and the center of gravity has moved up rapidly. It is expected that the phosphoric acid market may continue to rise in the short term, and it is also necessary to pay attention to the fluctuation of raw material prices.