Cost supported，China Phosphoric Acid market rises steadily

On March 5, the average price of domestic Phosphoric Acid was 5216.67 CNY / ton, 0.97% higher than that at the beginning of the last week, 3.3% higher than that at quarter-on-quarter, and 2.8% lower than that at the same period last year.

Last week, the Phosphoric Acid market continued to rise steadily. Recently, the price of raw material yellow phosphorus rose slightly. The price of Phosphoric Acid continued to rise cautiously. Compared with before the Chinese New Year holiday, the price increased by about 100-300 CNY / ton, and the low-end price gradually moved closer to the high-end price. At present, the market is gradually warming up, the downstream demand has slightly improved after the festival, the wait-and-see attitude has not decreased, and the actual transaction is tepid.

In terms of raw materials, the price of yellow phosphorus rose last week, and the spot cargo of yellow phosphorus was relatively tight. The main manufacturers delivered orders of the early stage, and the downstream purchased properly.

On the downstream side, the current market of ammonium phosphate is very good, and the price has risen to a new high in this year. With the rising price of raw materials, the domestic downstream demand is gradually increasing due to the approach of spring ploughing, and the foreign export demand is increasing. Under the favorable conditions, the price of ammonium phosphate is running at a high level. However, after the surge, the downstream companies were cautious and wait-and-see. Ammonium phosphate enterprises still stopped offers and reported too much. There was no sales pressure for the time being. They mainly issued orders in the early stage, and they were in strong price support mood. There is no obvious negative signal in the market, it is expected that ammonium phosphate will rise more likely, and the market will be strong in the short term.

Recently, the price of raw material yellow phosphorus has not risen much. The Phosphoric Acid market continues to rise cautiously, which is significantly higher than that before the Chinese New Year holiday. The low-end price gradually moves closer to the high-end price. The downstream demand has slightly improved, and the wait-and-see attitude remains unchanged. It is expected that the Phosphoric Acid market will continue to follow the fluctuation of cost side in the short term, with rising expectations.