Phosphoric acid prices are rising globally due to strong demand and limited supply. Steady exports from Morocco and higher imports in regions like India and Europe are driving up prices. Although trading activity has slowed a bit, demand remains consistent across key markets, including India, Europe, and Asia, which is keeping Phosphoric Acid prices on an upward trajectory.

Phosphoric acid prices in Morocco have seen an uptick recently, mainly due to stable demand and consistent DAP exports. OCP's shipments to markets like Europe, Asia, and particularly India show that buyers are securing their supply in preparation for the planting season. While the pace of new deals has slowed slightly, shipments for April and May continue to move at a steady rate. MAP exports to Central and Eastern Europe also suggest ongoing fertilizer production. All things considered, even though trading activity has cooled off a bit, the demand for phosphoric acid remains strong, supporting the price increase in Morocco.

Despite a drop in DAP production in India, phosphoric acid prices have been rising. This is largely because domestic production hasn’t been able to meet demand, prompting an increase in imports. With local supply tighter, the market is feeling the strain, especially with consistent export activity from Morocco and steady demand in regions like Central and Eastern Europe. While India’s sales have slowed down, the need for phosphoric acid remains strong, which is keeping prices on the rise, even if production is lagging behind expectations.

From the supply front, India's IPL closed a tender on April 20 for the long-term supply of 200,000 tonnes of Phosphoric Acid, with offers submitted by OCP, though final pricing details haven’t been revealed yet. April imports are expected to reach around 1.10 million tonnes, slightly below the average seen between January and April in previous years. Over in Morocco, 84,000 tonnes of Phosphoric Acid have already departed from Jorf Lasfar this month, with another 96,000 tonnes lined up for shipment—headed to destinations including Pakistan, India, Mozambique, and Turkey. In Western Europe, Q2 contract prices are still being negotiated, but one producer has indicated a $98/tonne increase following India's recent pricing trend. Meanwhile, China's export prices for purified Phosphoric Acid remain steady, with no major shifts in market sentiment.

As per the ChemAnalyst’s anticipation, Phosphoric Acid prices are likely to keep rising as demand picks up, while supply remains tight. Buyers are still dealing with affordability concerns, but with limited options available, higher prices seem inevitable. A price drop isn't expected until at least mid-Q2, and that will largely depend on supply conditions improving and buyers feeling more confident in the market. Until then, prices for Phosphoric Acid are expected to stay on an upward trend.