In April 2025, prices for phosphorus trichloride in Germany fell sharply, due to a combination of factors including weak downstream demand, low industrial activity, and general economic weakness. This is evidence of the continuing fundamental problems with the German economy and the chemicals industry's failure to recover. Besides, the last of business confidence and reduced investments have also impacted the overall chemical industry in the region.

Phosphorus trichloride is an important intermediate for the manufacture of agrochemicals, flame retardants, and pharmaceuticals, but the market is changing due to reduced demand from these industries. Reduced applications of fertilizers (agriculture) due to poor weather, and reduced use of phosphorus trichloride (in fertilizers) have also reduced demand. The flame retardant market is also facing issues due to reduced construction activity and the slowdown in consumer electronics production, which further weakens demand.

Germany's chemical supply was not immune to these pressures. Reported data shows that chemical production fell significantly, reaching levels not experienced since the mid-1990s. It is a reasonable assumption that the increased level of energy costs, regulatory compliance, and decreased competitiveness will impact future chemical production levels. A muted industrial output decreased the demand for phosphorus trichloride and placed downward pressure on already low prices.

The broader economic scene has also had a significant impact on Germany and the European market. Real GDP has grown slowly, with forecasters predicting modest economic growth activity in the future. Business confidence has fallen, and business investment has stagnated, due to uncertainty and organic resistance to activity. These conditions create further constraints on industrial output and thus demand for phosphorus trichloride.

Trade dynamics grossly influence aspects of the analyses above. An important market for German phosphorus trichloride and products is the United States, which is grappling with possible changes in trade policy. There was some discussion of eliminating tariffs between the EU and United States, but much remains undetermined. Any changes or new tariffs effecting trade will also impact the competitiveness of German phosphorus trichloride exports, and adjustments to domestic production or pricing.

Looking forward, a cautious approach to phosphorus trichloride prices in Germany is foreseen by the market participants. The ChemAnalyst database anticipates that prices will remain under pressure unless significant increases in demand from downstream markets, or a rebound of industrial activity occurs. Policy initiatives to spur the economy, along with improving global trade relations, will also impact phosphorus trichloride markets and provide some relief.