The Phosphorus acid market showed upward trajectory in April 2025 in the USA market after witnessing a decline in market dynamics in the previous month. The previous month showed declined growth in the domestic market as supply conditions remained robust amid stable to weak demand dynamics. April witnessed a rebound in demand from downstream agrochemical sector pushing the market sentiments in upward trend. The supply dynamics were impacted by the ongoing trade uncertainties further increasing the pressure in upward direction.

The prices of yellow phosphorus (upstream of Phosphorus Acid) increased significantly pushing the production cost of phosphorus related chemicals in upward direction and increased cost support in the supply chain. Although feedstock Phosphorus trichloride prices remained subdued amid oversupply in the market, this was not enough to offset the upward momentum generated by upstream market.

The contraction of factory activity further led to declined supply of Phosphorus acid in the domestic and international market. The major importer being China for USA, put further upward pressure on the supply chain due to the introduction of tariffs on all imports from China. With the announcement of increased tariffs, the supply chain faced headwinds which enhanced the supply pressures and are expected to continue in May 2025 leading to overall upward pressure on the market trends.

The demand for Phosphorus Acid remained strong and rebounded as compared to the previous month amid the onset of spring plantation season in April 2025. The demand for herbicides like Glyphosate witnessed a surge in the market which pushed the procurement of Phosphorus acid and increased the demand. The demand was robust supported by increased consumption in the sector, particularly in the cultivation of crops like corn, soybeans and cotton.

However, the market also faced some challenges as primary producer of Glyphosate, announced potential plans to cease production due to ongoing litigation concerns regarding health risks associated with the use of Glyphosate. As Phosphorus acid is used as major feedstock for its production, the direct demand for Phosphorus acid may decline due to above mentioned reasons.

According to analysts at ChemAnalyst, the demand for Phosphorus acid is expected to remain elevated in USA market due to the peak plantation season in April and May 2025 for various crops in the region. The ongoing trade war between USA and China may influence the market dynamics and may lead to strain in the supply chain leading to upward pressure. Furthermore, as the demand of Phosphorus acid from downstream agrochemical sector is expected to continue driving the prices, the supply dynamics can ease the pressure as USA market may continue to explore alternative markets to fulfil the growing demand in the domestic market amid the imposition of tariffs.