China Phosphoric Acid Offers Surge Due To Impact Of Covid
- 07-Jan-2022 3:41 PM
- Journalist: Nina Jiang
After the Chinese authorities restrict the exports of Phosphate based fertilizers and their raw material. The demand for Phosphoric Acid from the overseas market witnessed an enormous surge as governments across the globe along with the piled-up inquires from the overseas players.
Whereas the Chinese authorities are implementing strict measures after the persistent increment in the number of positive cases of COVID, the local government of Zhejiang province directed the forced closure of manufacturing plants in the province. In addition, the upcoming Winter Olympics in China strengthened the speculation about the closure of manufacturing sites and proportionally concerns the downstream players about the upcoming supply glut. In response, it soared the buying momentum at the spot market and the quotation of Phosphoric Acid witnessed a hike of 3% during the last week of December.
In 2021, the Phosphoric Acid market dynamics observed a paradigm shift from Agriculture fertilizers production to Lithium-Ferrous-Phosphate (LFP) Batteries manufacturing. In 2021, alone 300, 000 tonnes of purified Phosphoric Acid in China had shifted out to produce LFP batteries. In response, it proportionally equates curtailment of 500, 000 tonnes of Di-Ammonium Phosphate (DAP) fertilizers production.
In addition according to UN FAO, the global Food Price Index averaged at 125.7 points in 2021 witnessed a sharp increment of 28.9% compared to 2020. Therefore, to ensure domestic food security major exports across the globe either restrict the exports or impose the hiked tariffs and quota on the exports of Fertilizers and their raw materials.
As per ChemAnalyst, the FOB Qinzhou offers for Phosphoric Acid witnessed an increment of 65.28% in China, during the fourth quarter of 2021. Whereas, the projection of increment in demand from the LFP batteries and Phosphate based fertilizers sector. It is anticipated that the prices of purified Phosphoric Acid in China are likely to surge in the first quarter of 2022.