China Yellow Phosphorous Prices to Remain Firm in March and April
- 16-Mar-2022 8:28 AM
- Journalist: Nina Jiang
Yellow Phosphorous prices have stabilized after showcasing continuous rise in China. Prices in China observed a slight increment amidst the constraint supplies from domestic and international market in March 2022. As of the current scenario, gradual surge in the prices with a slight increment by 2.77% has been observed since February.
Some of the major fertilizer companies in China temporarily banned the export of feed Phosphate last year, at least until June 2022, to ensure the domestic supply of fertilisers for country's own food production. China imports Yellow Phosphorus mainly from Vietnam and Japan. Limited export was observed from Vietnam to Chinese domestic market because of low operating rates after weeklong holiday on Vietnamese new year in February.
Coal supply from Indonesia dropped by 14%, since last month. Due shortage of feed coking coke was observed which is used in furnace to manufacture Yellow Phosphorus. Electricity tariffs have remained slightly unregulated which have been affecting the production cost.
In the end of January, arbitrage witnessed a significant hinderance after the international express suspended, impacting domestic and international supplies against the inquiries from downstream traders. Downstream phosphorus trichloride and glyphosate manufacturers have started to make purchases for future purposes as March is the harvesting month in China. As per ChemAnalyst, “Prices of Yellow Phosphorus are likely to rise in Chinese market because of expected demand of downstream Phosphoric Acid and fertilizers from agriculture sector in the month of March and April.”