China Sodium Hexametaphosphate prices increased 1.82% in May 2026, supported by a 10.36% rise in phosphoric acid costs and tighter yellow phosphorus availability. Supply-side cost pressures intensified as phosphate raw materials remained constrained, prompting producers to raise SHMP offers. Export demand from the United States, Brazil, and Southeast Asia provided the primary source of market support, offsetting weak domestic construction-related consumption. Looking ahead to June, prices are expected to remain firm as phosphate rock supply stays tight, sulphur inventories remain low, and upstream production costs remain elevated. Stable export demand and limited spot availability are likely to sustain further upward pressure on China's SHMP market.
China's Sodium Hexametaphosphate (SHMP) market is expected to remain firm through June 2026 as tight phosphate raw material availability and elevated production costs continue to support prices. The bullish outlook follows a 1.82% increase in May 2026, when rising phosphoric acid costs and healthy export demand outweighed subdued domestic consumption from construction-linked sectors.
Supply-side conditions for SHMP strengthened throughout May as upstream phosphoric acid prices surged 10.36% month-on-month. The increase was largely driven by tight yellow phosphorus availability, with producers reluctant to sell amid constrained spot supplies and rising transaction prices. Higher feedstock costs significantly squeezed margins for SHMP manufacturers, prompting immediate adjustments in finished-product quotations. While domestic SHMP production remained stable overall, producers faced mounting cost pressures from across the phosphate value chain, limiting their willingness to offer discounts and reinforcing a firmer pricing environment.
Demand conditions were led primarily by export markets. Buyers in the United States and Brazil increased procurement ahead of mid-year detergent production campaigns, while beverage and food-processing manufacturers across Southeast Asia secured additional food-grade SHMP volumes to support summer-season demand. This offshore purchasing activity offset weaker domestic consumption from China's tile and construction sectors, which continued to be affected by the prolonged property market slowdown. Meanwhile, detergent, water treatment, and food-processing industries maintained regular procurement patterns, purchasing largely on an as-needed basis and providing a stable demand foundation for SHMP.
Looking ahead to June 2026, market fundamentals suggest further upward pressure on SHMP prices. Domestic phosphate rock supply remains structurally tight due to limited high-grade reserves, strict environmental regulations, and high extraction costs. While operating rates at major mines remain stable, the industry's ability to rapidly increase output remains constrained. At the same time, yellow phosphorus producers continue to face rising electricity and phosphate rock costs, reducing incentives for aggressive production increases. Spot availability across both phosphate rock and yellow phosphorus markets remains limited, suggesting feedstock costs are likely to stay elevated. As SHMP production economics remain closely tied to these upstream markets, manufacturers are expected to maintain firm pricing strategies throughout June.
Additional support is expected from persistently low inventories across the phosphate supply chain. Sulphur imports have been affected by ongoing disruptions to Middle Eastern trade flows, keeping domestic sulphur inventories near low levels and sustaining phosphoric acid production costs. Inventories of phosphate rock, yellow phosphorus, and phosphoric acid remain lean, with most volumes committed under long-term contracts and limited spot material available for circulation. SHMP demand from detergent, water-treatment, and food-processing sectors is expected to remain stable, while export inquiries are likely to continue amid seasonal consumption trends in overseas markets. Consequently, the combination of constrained raw material availability, low inventories, and steady downstream demand is anticipated to keep China's SHMP market on a firm upward trajectory through June.
