In June, the cost support collapsed, and the maximum price reduction of phosphoric acid enterprises was 400 yuan (6.1-6.16)

1、 Price trend

 

According to the bulk data list of business agency, the average price of phosphoric acid in China on June 16 was 4950 yuan / ton, down 2.94% compared with Tuesday (9), 4.81% compared with 5200 yuan / ton at the beginning of the month (1), and 8.79% higher than the same period last year

 

2、 Market analysis

 

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In June, the phosphoric acid market was weak, and the price continued to fall. After the implementation of the high water price for raw material yellow phosphorus, the price fell to a low level. Due to the close relationship between phosphoric acid (thermal process) and yellow phosphorus, the price of yellow phosphorus decreased rapidly, the cost end support collapsed, and the price of phosphoric acid also decreased. The trading center continued to move downward, and some enterprises decreased significantly, with a maximum of 400 yuan. At present, the trend of phosphoric acid continues to decline, the wait-and-see mood of enterprises increases, the trading atmosphere is general, the market transactions are mostly concentrated in the middle and low end, the high-end price begins to decline, and the shipment is under pressure. At present, the transaction of wet process phosphoric acid is acceptable. Due to the low inventory and good transaction, the price of the enterprise has not been greatly reduced. However, on the whole, the supply and demand of phosphoric acid market are weak, the trend continues to decline, and the future market is not optimistic.

 

According to the monitoring of the business association, as of June 16, the average market price of 85% industrial purified water phosphoric acid was about 4950 yuan / ton, and the price in Sichuan region was about 4750 yuan / ton – 5200 yuan / ton, with a downward trend; the price in Guangxi region was about 4730 yuan / ton, with a downward trend; the price in Yunnan region was about 4800 yuan / ton, with a weak transaction; the price in Beijing region was about 4900 yuan / ton, with a downward trend; the price in Hubei region was about 4900 yuan / ton, with a downward trend The price is about 4800 yuan / ton, and the price drops; the price in Jiangsu is about 4500 yuan / ton, and the price is temporarily stable; the price in Tianjin is about 5300 yuan / ton, and the price in Tianjin is down

 

The data shows that the export volume this year is significantly reduced compared with last year due to the impact of public health events. In March, enterprises returned to work one after another, with a significant increase in export volume. However, the export volume fell back in April, with the upgrading of overseas public health events, with a sharp decrease in export volume. Only a few big companies are selling goods, and the business is in a negative state of mind. Most of them are sold domestically.

 

Upstream, raw phosphorus ore market is currently in the off-season, the downstream demand is weak, and the market trading is cold. It is expected that the recent market price changes are limited. It is not excluded that some regions make a small profit in the actual negotiations for the accumulation of orders in the later period, so as to drive the market downward adjustment.

 

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Yellow phosphorus market price decreased. In June, Yunnan Province entered into the wet season. After the implementation of the wet season electricity price, the cost of the enterprise went down, and the market price fell to a certain extent. The overall market sales situation is general, the downstream procurement is more cautious, who uses who takes. It is expected that the price of yellow phosphorus will still be adjusted in the near future.

 

3、 Future forecast

 

According to the phosphoric acid analyst of Business & Social chemical branch, in the near future, the price of raw material yellow phosphorus has been reduced, and the price of phosphoric acid has been following the decline. Downstream enterprises are cautious in their inquiry and wait-and-see attitude has been rising. It is expected that the trend of phosphoric acid will continue to decline in the short term, and more attention should be paid to the change of raw material price in the later period.

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