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As market sentiment grew more cautious in the second half of July, phosphoric acid prices in China slightly declined. Buyers started to hold back, expecting more corrections, as the earlier support from the limited supply of yellow phosphorus waned. The pressure was increased by weak demand from downstream industries like food processing and fertilizers. Some producers were forced to slightly reduce their offers in order to keep shipments moving due to slower offtake and a lack of new inquiries.
In the Chinese market, the Phosphoric Acid market lost momentum in the second half of July after a relatively firm start to the month. Early gains were driven by tight supply and rising prices of yellow phosphorus, which helped push up offers for Phosphoric Acid Solution. Buying interest was steady, and downstream inquiries showed some improvement. Market participants became cautious, and overall trading activity started to cool off. Buyers held back, anticipating further Phosphoric Acid price corrections, while sellers grew more willing to negotiate.
By late July, producers of Phosphoric Acid were facing slower offtake and muted sentiment across end-use sectors like fertilizers and food processing. Transactions became sparse, and small price reductions were seen just to keep volumes moving.
With limited demand and falling feedstock prices, the Phosphoric Acid market closed the month on a softer note. Most suppliers are now adopting a wait-and-watch approach, hoping for better signals in early August. Unless there’s a notable rebound in either upstream or downstream movement, prices are likely to remain under mild pressure on the Phosphoric Acid price in the short term.
As per the data given by Statistics China, the total export of the Phosphoric Acid in all forms reached to 96545.135 MT in June marking an increment of 0.76% from a month ago. Some major suppliers prioritized long-term contract fulfillment to maintain stable cash flow, while others made modest adjustments to their export offers to stay competitive—particularly in Southeast and South Asia. Overseas demand remained firm, even as domestic activity slowed in the latter half of the month. As a result, exporters continued steady shipments, supported by stable inventory levels and a cautious but consistent approach to the international market.
As per the ChemAnalyst anticipation, the Phosphoric Acid market is likely to hold steady in the short term, though there are signs it could edge slightly lower. With raw material prices expected to soften further, there’s not much cost support from the upstream side. That’s making both buyers and sellers a bit more cautious. Demand isn’t picking up in any noticeable way either, so suppliers don’t have much reason to adjust Phosphoric Acid prices aggressively. Unless there’s a clear shift in feedstock trends or downstream buying, the market will probably stay quiet with a slight downward lean.
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