As of the last week in October 2025, the global Phosphoric Acid market gained momentum, supported by firm feedstock prices, limited supply, and steady downstream demand. Phosphoric Acid producers in the key exporting regions (North Africa and the Middle East) were cautious in committing to new sales, as rising input costs continued to pressure margins.
The upward movement in the markets for sulphur and sulphuric acid has been the key factor behind the recent firmness in Phosphoric Acid offers. The upstream phosphate rock market continues to provide cost support as well. Although the price movement in phosphate rock was mixed, high-grade phosphate rock prices were reported to have increased and remain at a historically high level, which is adding to the firm production cost structure. This feedstock situation has continued to experience strong price gains due to supply limitations and solid industrial demand that is generating elevated production costs for Phosphoric Acid manufacturers. These developments have motivated producers to take a firmer pricing stance and buyers are becoming more proactive in securing term contracts.
India, the biggest Phosphoric Acid importer in the world, has seen importers continue to enter into contracts in advance of the Rabi planting season. Demand remains stable among domestic DAP and NPK producers with agricultural consumption remaining stable. Nonetheless, uncertainty over shipping timelines, combined with limited production from upstream producers, has led to upward pressure on the Phosphoric Acid market.
On the demand side, trade data indicates a robust underlying market that would limit the potential for a softness in pricing. Total Phosphoric Acid exports for the first eight months of the year were up 3% year-on-year, totaling 1.47 million tonnes. This increase was largely driven by India, where exports of Phosphoric Acid increased by 15% in the eight-month period. Conversely, exports to Pakistan decreased by 5%.
Suppliers located in North Africa and the Middle East are more focused on their long-term customers and looking to reduce spot market exposure. This conscious reduction, combined with increasing feedstock prices has accounted for a tightening in global supply. Market participants have said that inventories in the important consuming regions are still relatively low and continue to support bullish sentiment.
As per the ChemAnalyst anticipation, Phosphoric Acid prices will exhibit bullish sentiment in the near term because high feedstock costs continue to squeeze production margins. Market strength of the Phosphoric Acid will be reinforced by solid fertilizer demand and steady export activity for urea and phosphates. Ongoing inflationary pressure on feedstock prices should also inhibit any meaningful price concession.
