Review of phosphoric acid market in 2022
In 2022, the annual market trend of phosphoric acid is mainly volatile and downward. In the first half of the year, phosphoric acid was first suppressed and then raised, and operated at a high level. In the second half of the year, phosphoric acid rose and fell sharply, went down in shock. Compared with last year, the price fluctuation in 2022 decreased. According to the chart of the rise and fall in 2022, the largest increase in the year was September, with an increase of 14.67%. The largest drop in the year was in July, with a drop of 19.68%.
Phase I
In the first half of 2022, the domestic phosphoric acid market was depressed first and then rose, and it fluctuate at a high level. Before the Spring Festival, the cost support was insufficient, the transportation capacity was limited, the downstream factories were on holiday, the dealers hadbeen delisted, the market turnover was scarce, and the high-end price of phosphoric acid had declined. After the Spring Festival, the price of phosphoric acid began to rise, and in late March, the price of yellow phosphorus began to rebound from the bottom due to the news of Guizhou security inspection and production reduction. In April, the price of phosphoric acid rose to more than 10,000 RMB/ton, and the market center moved up. In May, the raw material yellow phosphorus rose strongly to about 40,000 RMB/ton, the cost support was strengthened, and the market supply was reduced. Phosphoric acid enterprises mainly supplied old customers, and the price rose with the cost. In June, the price of raw material yellow phosphorus dropped from a high level, the support of cost side was weakened, and the follow-up of downstream demand was general, and the price of phosphoric acid was lowered.
Phase II
In the second half of 2022, domestic phosphoric acid prices rose and fell sharply, the price was mixed. Since July, the price of raw phosphorus had dropped again, and the cost support was weak. In addition, due to the limited follow-up of downstream demand and the large supply of phosphoric acid, phosphoric acid manufacturers and dealers had reduced their prices. From the second half of August, yellow phosphorus, the raw material, became stronger and phosphoric acid began to rise continuously. Due to power rationing and rising costs in Sichuan, most manufacturers had suspended receiving orders and dealers had raised their prices. The supply of phosphoric acid was tightened, and the positive factors in the market increased. In September, the price of raw material yellow phosphorus continued to rise, and the cost of phosphoric acid was good. Driven by the rising trend of raw materials, the phosphoric acid market rose. From the second half of October, the phosphoric acid market began to fluctuate downward, fluctuating with the raw material market. At the end of the year, the price of raw material yellow phosphorus was in a stalemate, the downstream suppressed the purchasing price, the cost support for phosphoric acid was weakened, the terminal demand for phosphoric acid was depressed, the number of new orders on the market was relatively small, and the focus of the deal on the phosphoric acid market moved down.
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