Contrary to Market Expectations, Phosphorus Trichloride Prices Plunged in India
- 28-Dec-2021 10:40 AM
- Journalist: Jai Sen
Opposite to the speculated market dynamics, Phosphorus Trichloride prices plunged in India during past couple of weeks on the back of cheaper cargoes from China. Despite of the fact that, raw material yellow phosphorus prices are still hovering at a very high value in Chinese market, and recently prices again surged by a significant value due to high demand, Indian traders received cheaper cargoes during past few weeks.
As per ChemAnalyst sources, Indian traders are quoting very low prices compared to previous months, as they have received scheduled cargoes which was running delayed since a long time.
Dual energy control policies in China compelled manufacturers and miners to halt their production activities, which affected the price dynamics of those commodities across regional market. Consequently, raw material yellow phosphorus as well as downstream derivatives including Phosphorus Trichloride prices shot up abruptly in China.
However, during the month of November yellow phosphorus prices declined due to sudden plunge in demand after announcement of several plant shutdowns of downstream derivative chemicals. Meanwhile, traders and downstream users made contract purchases on a cheaper price, and those cargoes have now started arriving in India. These circumstances pushed down the Phosphorus Trichloride pricing dynamics across Indian market.
As per ChemAnalyst analysis, Phosphorus Trichloride are expected to remain dull for further couple of weeks in India, as traders still have ample stocks that can last for the aforementioned time period. However, this pricing dynamics may shift balance in the coming quarter in Indian as well as in the APAC region, due to consistent uptrend in raw material cost coupled with inflationary pressure in the global market.