China Phosphorus Trichloride Prices Remain Sluggish Amid Weak Feedstock Prices
- 16-Dec-2022 3:26 PM
- Journalist: Rene Swann
The Phosphorus Trichloride Prices have been falling in the Chinese market with decreasing consumption from downstream and declining feedstock prices in the regional market.
Yellow phosphorus prices, the feedstock of the Phosphorus Trichloride, have been on a bearish rally in the first ten days of this month, with poor market demand and limited turnover of new orders. The Yellow phosphorus manufacturer's inventory increased, the market price fell sharply, and the manufacturer did not make an external quotation. The Yellow phosphorus enterprise negotiated according to the price situation and arranged the costs individually.
The prices of Phosphorus Trichloride decreased in the Chinese market. As per the latest assessment, prices were assessed at USD 1998/MT Ind. Grade FOB Shanghai with a weekly drop of 10% (USD 222/MT) as recorded by ChemAnalyst pricing team data.
In mid-December, the Phosphorus Trichloride market was weak, and downstream industries were reluctant in their procurements amid the slowdown in the Chinese economy and the pessimistic outlook forecasted for Q1 2023.
Currently, there is a robust wait-and-see mood in the Phosphorus Trichloride market as downstream manufacturers and traders fear phosphoric acid prices might decline once they buy it. Yellow phosphorus market demand was light; the price fell near the cost price, and downstream Phosphorus Trichloride traders and buyers purchased at the bottom. In addition, transportation in some regions could be smoother at present, and there is uncertainty about the market, so should be paid attention to the future market.
The demand from downstream fertilizers and dyes intermediate market decreased with declining consumption in the regional market. Thus, the inventories with the traders and the suppliers elevated, thus contributing to the stockpiling of Phosphorus Trichloride. The current bearishness results from falling overseas demand than lockdown disruptions to supply chains. The freight charges were observed falling in the Chinese trade route to the other importing Asian countries like South Korea and Singapore, and the West.