Yellow phosphorous values firmed through January on pre-holiday restocking and energy-driven production constraints that tightened near-term supply. Early in January, producers in Yunnan, Sichuan, and Guizhou trimmed operating rates ahead of the Lunar New Year, while mid-January agrochemical buying drew down inland inventories. Mid-to-late January portside turnover accelerated as buyers secured cargoes to avoid post-holiday shortages, with export volumes kept under control. Winter power tariffs and reduced hydroelectric availability raised production costs, contributing to a firmer market tone despite nominally stable furnace capacity. Demand for yellow phosphorous from agrochemical manufacturers provided the primary support for the rally, securing feedstock for glyphosate, thermal phosphoric acid, and fertiliser formulations ahead of extended closures. Other downstream segments showed steadier procurement: flame-retardant intermediates and battery materials offered moderate support but did not match agrochemical restocking urgency. Supply was tightened by higher electricity costs, lower hydro output, and several force majeure outages across Sichuan, Guizhou, and Jiangyin, underscoring near-term constraints and an uncertain outlook into the coming period.
