For the Quarter Ending March 2023
North America
In the North American region, Phosphoric Acid experienced a declining price trend during the first quarter of 2023, with prices falling from USD 1270/MT in January to USD 1168/MT in March. The plummeted trend was maintained this quarter because of dampened market dynamics accompanied by low demand from local as well as overseas markets. Also, downstream industries, majorly fertilizers, opted for a wait-and-see approach toward the price trend, resulting in weak purchasing activity. According to market participants, the operating rates remained weak in the US domestic market. The deterioration in operating conditions stemmed largely from further contractions in output and new orders. However, sticky inflation pressurized the US Federal Reserve to increase the interest rates, which impacted consumer confidence, and traders made offtakes at lower margins amid sufficient availability.
Asia- Pacific
Phosphoric Acid prices in the Asia-Pacific region exhibited a mixed trend during the first quarter of 2023. The Phosphoric Acid market witnessed a positive start to the quarter due to a rise in raw material yellow phosphorus prices. According to market participants, the resurgence in market activities was observed after the government abandoned its zero-COVID policy. There were few new orders with a rebound in demand from downstream fertilizers, food, and other industries ahead of the Lunar New Year holiday. After that, the price trend of Phosphoric Acid plummeted along with bearish market sentiments, with prices declining from USD 1465/MT on February 3 to USD 1320/MT on March 31. Dwindling production costs among Phosphoric Acid manufacturing units were there on the back of a decline in feedstock Yellow phosphorous prices. In terms of supply, inventories were sufficient in the domestic market after the improvement in manufacturing activities in China. However, purchasing enthusiasm remained muted because of low demand from domestic and overseas markets. Consequently, some distributors were forced to trim their prices as market activity was not up to expectations.
Europe
The Phosphoric Acid market in Europe experienced a bearish sentiment in the first quarter of 2023. The decrease in Phosphoric Acid prices in Germany during this quarter was due to adequate product availability and declining demand in the domestic and international markets. According to market players, operating rates slowly declined in this quarter due to low consumption and no new orders of Phosphoric Acid, but material availability in the local market was not affected and remained sufficient among domestic suppliers as imports from the overseas market have remained steady with no supply chain disruption. The market transactions were light and downstream support from fertilizers, food, and other industries was insufficient as purchasers lacked confidence, due to which the suppliers lowered the quotations to stimulate buying performance. Therefore, the price of Phosphoric Acid settled at USD 1362/MT FD Hamburg on March 31.
For the Quarter Ending December 2022
North America
The prices of Phosphoric Acid shifted in a downward parabolic shape during the fourth quarter of 2022 in the North American market, with costs ranging at the peak during the middle of the quarter at USD 1348/ton, 85% FOB Texas (USA) in November. The logistics in the USA market improved, although the rise in the supply of the product affected the market sentiments. Decreased demand for Phosphoric Acid in the food, beverage, and pharmaceutical industries has pulled down the global Phosphoric Acid market growth. The supply remained sufficient to meet the country's available consumption, while demand from the fertilizer and mining industries remained weak.
Asia
In the Q4 of 2022, the prices of Phosphoric Acid weakened in the Asian market, with costs ranging from USD 1635/ton to 85% FOB Qinzhou in October. The yellow phosphorus raw material price was lowered, and the cost pressure was slightly eased. Starting loads of phosphoric acid enterprises gradually increased, and flexible pricing spaces increased, so the price was lowered. There was more room for price cuts for phosphoric acid companies because downstream demand has remained stable to sluggish. There was a weak downstream demand for Phosphoric Acid this quarter, a soft trading atmosphere in the market, and a wait-and-see mentality in the Phosphoric Acid, and the downstream was largely witnessed during the last quarter of 2022.
Europe
During the fourth quarter of 2022, the market value of Phosphoric Acid remained plummeted, with costs ranging at USD 2610/ton Industrial Grade FD Hamburg in December as per ChemAnalyst Research Team Data. Phosphoric Acid prices in the German market have decreased with the depletion of production costs, as noted by traders. Stockpiling of inventories occurred because of high imports on the regional market. Market sentiments were affected by a decrease in Phosphoric Acid demand in the downstream fertilizer and detergent industries. There were sharp negative adjustments in the import prices of Phosphoric Acid in the local market as Germany imports Phosphoric Acid from other European countries.
For The Quarter Ending September 2022
North America
The third quarter of 2022 saw an escalation of Phosphoric Acid prices in the US market, with prices ranging at USD 1295/ton Phosphoric Acid 85% FOB Texas during September. The demand for essential consuming fertilizers remained low in July. Meanwhile, the exporting demand from the European countries was high during the summer, although trading activity remained halted amidst the penultimate quarter in the USA. Phosphoric acid consumption increased in the soaps and detergents industry by the end of the quarter. Rising inflationary pressure due to the global pandemic and the ongoing war between Russia and Ukraine also increased prices in the regional US market
Asia-pacific
Phosphoric Acid prices were see-sawed in the Asian market during the third quarter of 2022, with prices hovering at USD 1716/ton Phosphoric Acid 85% FOB Qinzhou. The cost from upstream Phosphate rock was strengthened and supported the product's cost during the beginning of the quarter. The low supply and increased downstream demand derivatives resulted in a rise in the price movement in the regional Chinese market by the end of August. In September, there were few changes in the market situation, resulting in a stable product price and further easing the market sentiments bringing limited change in the trend of Phosphoric Acid and its other downstream uses.
Europe
During Q3 2022, Phosphoric Acid prices were seen to rise on the stable front in the European market. In August, the domestic market of Phosphoric Acid in Germany witnessed an increasing trend. Demand from the downstream fertilizers market increased the price of the product. The supply chain situation was poor in the region, with lower product availability due to shortages of shipments, as observed in the market during the end of the quarter. However, the inventories were decreasing with the traders and the suppliers, thus causing lower stockpiling of products. The raw material Phosphate rock and Sulphuric Acid prices were soaring in the Netherlands market.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the Phosphoric Acid has observed gyration throughout the region. Demand from the Phosphate fertilizer industries increased the price of Phosphoric Acid and food prices in the region. The fertilizer supply chain was disrupted, especially in China, due to COVID lockdown as a major fertilizer producer; the region had substantial fertilizer shortages. Western countries-imposed sanctions on Russia due to its invasion of Ukraine, which affected the phosphate-based fertilizer procured from the overseas market. The rising population and limited arable land have resulted in a greater reliance on fertilizers to meet the growing demand in the United States.
Asia-Pacific
The Asia Pacific market showed an up and down in Phosphoric Acid prices throughout the second quarter of 2022. Growing demand from downstream pharma, agriculture, food, and beverages drives the regional phosphate market. China has suspended exporting fertilizers until June 2022 to ensure the domestic availability of the product. Indian authorities have signed an agreement with Jordan Phosphate Mining company (JPMC) to supply 1 Lakh Metric Tonne of Phosphoric Acid to the Indian Public and Private companies from now and over the next five years to curb the demand for the upcoming Kharif season. India has finalized the critical supply of fertilizers from Russia under a barter system agreement avoiding dollar transactions due to US sanctions. The percentage of Food grade Phosphoric Acid was recorded at an inclination of 3% on an Ex-Mumbai basis during the second quarter.
Europe
In the second quarter of 2022, the market sentiments for Phosphoric Acid were volatile in the European market due to the problems occurring in the eastern Europe region. The war-related situations disrupted the supply chains and soared the product prices in the market. Demand in the raw material supply affected the downstream industries like fertilizers. Russia and China's largest fertilizer exporter has already suspended fertilizer export. Europe's natural gas prices had increased, seeing the price hike in fertilizer sectors in the entire region. The Russian authorities' firm stance on trading the Ruble (Russian currency) has put pressure on supply disruptions to stabilize demand in the local market.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, the Phosphoric Acid market in the North American region witnessed several gyrations amidst the persistent hindrances in the global commodity cycle. According to the UN FAO, the food pricing index peaked in December 2021, and since then the situation further worsened as the food prices constantly witnessed the impact of inflation on the global front. The demand from the European market soared drastically after the Chinese and Russian supplies for Phosphate based fertilizers were difficult to procure after the authorities imposed restrictions on exports to the overseas market or increased the tariffs. As a ripple effect, the prices of Phosphoric Acid in the US market remained buoyed throughout the first quarter and the discussions were settled at USD 2238 per tonne in March of 2022.
Asia Pacific
In the first quarter of 2022, the Asia Pacific market observed persistent fluctuations in the offers of Phosphoric Acid. The restriction imposed by the Chinese authorities on Phosphate based fertilizers and makeshift in the market dynamics of Phosphoric Acid, as an important commodity in the EV sector. Collectively pressurized the supplies of Phosphoric Acid in the domestic market and the cost support from the upstream persistently remained high. Although, some relief was witnessed as the speculation regarding the exports of phosphate-based fertilizers resumes in the mid-of first quarter of 2022 uplifted the sentiments at the spot market. Whereas, agricultural-based economies such as India, started working to safeguard their interests way earlier, besides subsidizing the raw materials of fertilizers in the domestic market. Although, the FOB-Qinzhou discussions for Phosphoric Acid 85% were settled at USD 1995 per tonne, in March 2022.
Europe
In the first quarter of 2022, the market dynamics were not favorable for the European market as their initiatives on renewable energy sources were majorly the root cause of the problem for the region. Since the last year, the European market is observing the pressurized supplies of natural gas against the falling temperature. Whereas, recently the conflict that broke out between Russia and Europe has further suppressed the market dynamics amidst the sanctions on Russia and the export quota induced by the Russian authorities on the exports of fertilizers has worsened the situation in the European market. In response, the market sentiments for Phosphoric Acid were remained buoyed throughout the quarter and discussions for CFR Hamburg were settled at USD 2479 per tonne.
For the Quarter Ending December 2021
North America
In the fourth quarter of 2021, the Phosphoric Acid market in the North American region remained consolidated and the producers offers constantly fluctuated throughout the quarter. The major reason for such market movement is majorly attributed to the minimal dependency on Chinese suppliers for the Fertilizers export and the adequate domestic production. This paradigm shift in the Phosphoric Acid market trend from the fertilizers sector to the EV sector has supported the demand outlook in the North American region. In repercussion, the FOB USA quarterly average was assessed at USD 1650 per tonne, during the quarter ending.
Asia Pacific
The Phosphoric Acid market in the Asia Pacific witnessed enormous growth in the fourth quarter after the Chinese authorities restrict the exports of Phosphate based fertilizers and their raw materials till the second quarter of 2022. This concerned the China-dependent states like India on the downstream DAP to ensure the supply of Phosphoric Acid from the other suppliers. Whereas the shift in the market dynamics of Phosphoric Acid towards the EV’s segment supported the offered quotations to witness multifold gains in the fourth quarter. Therefore, the Ex-Mumbai (India) discussion for Phosphoric Acid Food Grade was settled at USD 1746 per tonne, in December 2021.
Middle East
As the Chinese authorities restricted the exports of DAP and its key raw material till the second quarter of 2022, the demand outlook for Phosphoric Acid skyrocketed in the fourth quarter of 2021. The inquiries from the Indian downstream buyers have poured to ensure the supply of Phosphoric Acid in the fourth quarter Morocco exported 100915.2 MT of Phosphoric Acid worth trade value of USD 100 Million. Therefore, due to the exceptional support from the demand outlook, it further strengthened the will of Phosphoric producers in Morocco to hike the offers for Phosphoric Acid fertilizer grade by USD 170 per tonne, to FOB Nador (Morocco) discussion for Phosphoric Acid settled at USD 1210 per tonne by the quarter ending.
For the Quarter Ending September 2021
North America
The prices of Phosphoric Acid rose effectively in the 3rd quarter of 2021 in the North American region on the back of the consistent demand for agricultural products. The pricing trend for phosphate-based fertilizers demonstrated an upward trajectory across the region due to increment in the prices of Phosphoric Acid. Phosphoric Acid prices almost doubled from the year ago period, translating marked gains in the region’s phosphate fertilizer pricing and adding to the worries of several corn farmers in the U.S.
Asia
The market outlook of Phosphoric Acid observed a significant rise in the Asia Pacific region in Q3 2021. The prices of Phosphoric Acid rose effectively in the Chinese domestic market due to a strong rise in global demand. In India, the demand for Phosphoric Acid remained high in August, backed by firm offtakes from the domestic DAP (Diammonium Phosphate) manufacturers, while the availability remained insufficient to cater to the overall demand. Global scarcity of Phosphoric Acid surged the overall price of several phosphate fertilizers in India, where the government was trying to regulate the downstream fertilizers prices to reduce the burden from domestic farmers. Phosphoric Acid (Fertilizer Grade 51.75%) CFR Kandla (India) prices escalated from USD 972/MT to USD 1220/MT in the third quarter of 2021.
Europe
The domestic market observed an increment in the prices for phosphate-based fertilizers in the European region in the third quarter of 2021 which further led to the increased price of Phosphoric acid across the region. Hiked prices of agricultural products and their consistent demand in the US and European markets propelled the global demand for the material in Q3. The region’s phosphate fertilizers production continued to stay under the pressure of extreme weather conditions, plant shutdowns, sanctions, and rising energy costs in Europe and China, pushing prices to record levels in Q3.
For the Quarter Ending June 2021
North America
Phosphoric Acid prices rallied upwards across North America region, backed by firm demand from the domestic and global market. Demand for Phosphoric Acid from the downstream fertilizers manufactures remained high throughout the quarter, as the domestic farming sector picked up the pace during the month of May and June. In addition, strong DAP demand from European and Asian countries pushed up the global Phosphoric Acid demand that supported the upward trajectory of its pricing curve. The price of Phosphoric Acid reached its peak during the first week of June and hovered around USD 690/MT in USA.
Asia
During this quarter, price of several fertilizers rose sharply, due to unprecedented rise in feedstock chemicals including Phosphoric Acid, which is key feedstock for DAP. Effective rise in demand from the downstream DAP manufacturers increased the prices of Phosphoric Acid in the APAC region. While in China, prices also gained effectively due to strong rise in global demand. Frequent rise in price of feedstock chemicals, led to an extreme rise in downstream products that forced the Indian government to intervene and take measures to provide some relief to DAP consumers in India. The price of Phosphoric acid was assessed as USD 863/MT for 75% technical grade during the month of June.
Europe
The price of Phosphoric Acid climbed up in this quarter in major European countries, backed by sturdy demand from the downstream fertilizer segment. The agrochemicals sector of Europe showcased a rebound after witnessing critical weather conditions during the previous quarter. This rise in demand from the fertilizer manufacturers initiated an overall buoyancy in the price of Phosphoric Acid. In addition, due to global price hike, cargoes coming to Europe from Asia were also quoted expensive, where higher freight cost exacerbated the over price scenario.
For the Quarter Ending March 2021
North America
Freezing weather halted the production activity across the US gulf during Q1 2021, hence the prices of Phosphoric Acid increased significantly. The demand from the key consuming fertiliser sector remained low during the period, due to freezing weather conditions and limited cropping. Meanwhile the export demand from the European countries was high amidst spring season, although the trading activity remained largely halted during this period. The prices of Phosphoric Acid rose in the US rose from USD 615/MT (January 2021) to USD 645/MT (March 2021).
Asia
The performance of the Asian fertiliser industry remained dull during this period, hence the domestic demand for Phosphoric Acid remained low in the region. Although rising demand from the European countries maintained the buying momentum in the region. Several manufacturers were opting to export, rather than keeping it for the domestic market so as to secure better margins. Suez Canal blockage also impacted the trading activity across the region. Several Phosphoric Acid consignments were delayed during this period. In addition, from January to March, Phosphoric Acid prices rose by 4.8% in the Indian market despite showing a marginal movement in China.
Europe
Europe had a fair demand from the domestic fertiliser sector due to spring season, although the domestic supply remained insufficient to satisfy the total domestic demand. Hence the import demand across the region remained high that caused the prices to rise effectively. Meanwhile, extreme cold snap across the US market reduced the availability of Phosphoric Acid across the region and hence the traders diverted their dependency from the US to the Asian countries.
For the Quarter Ending December 2020
North America
The demand of Phosphoric Acid increased due to favorable crop output in the US. With various government initiatives to support the pressured economy, the demand of Phosphoric Acid remained well above producer’s expectations. In Q4 of 2020, the North American Phosphoric Acid sales remained stable with prices for the product maintained at higher levels to shed the previously incurred losses. Traded volumes were stable as fertilizer market were affected by lower phosphoric acid exports amid port related congestions heard towards the end of the quarter.
Asia
The demand for phosphoric acid in the Asian market from various countries like China and India remained stable in Q4 due to its applications in the production of phosphate fertilizers. A leading player reported ramped up operating rates at its White Phosphoric Acid plant in China and is likely to commence production at its commercial food-grade acid by the end of Q1 2021. Pent-up demand from the textile and sugar industries mills kept the regional offers in a suitable range. The stability in prices of phosphorous assured stable price of Phosphoric Acid. Indian players reported increased Phosphoric acid usage in several industrial applications in Q4 of 2020 where the domestic prices stood around 713 USD/MT.
Europe
Market outlook of phosphoric acid in Europe remained somewhat steady. The offered prices of Phosphoric Acid were increased as players reported strong demand in the European region with consumers actively restocking to make purchases for the spring season. Its major consumption in the production of phosphate fertilizers increased the demand in the Q4 of 2020 as the fertilizer industry was least affected by the pandemic. White phosphoric acid (WPA) imports were reported high with a considerable improvement in food grade phosphates and stable industrial salts maintain the offers high.
