For the Quarter Ending June 2025
Asia-Pacific (APAC)
• Phosphorus Pentachloride Price Index in China fell 5.3% quarter-on-quarter, settling at USD 685/MT FOB Shandong.
• Why did the price of Phosphorus Pentachloride change in July 2025 in China? Prices remained under slight downward pressure amid ongoing just-in-time purchasing from electrolyte manufacturers and thin spot inquiries from buyers.
• Phosphorus Pentachloride Demand from the battery sector remained stable, subdued restocking interest and firm feedstock costs capped any bullish movement.
• Phosphorus Pentachloride Price Forecast for Q3 2025: Prices are likely to remain soft-to-stable, with only limited upside unless battery-cell procurement ramps up significantly. Feedstock and freight costs will play a key role in shaping landed prices.
• Phosphorus Pentachloride Production Cost Trend: Throughout Q2 2025, production costs fluctuated mildly. Phosphorus trichloride prices fell 1.1% in early May, which temporarily eased the cost burden. However, yellow phosphorus prices firmed slightly by mid-June, pressuring margins again.
• Phosphorus Pentachloride Demand Outlook: Cautious procurement continued to dominate the demand outlook, particularly among Chinese electrolyte producers.
• Spot demand from South Asia and Southeast Asia was sluggish, while exports to Europe faced volatility due to regulatory shifts and logistics.
• Automotive Sector: China's NEV sector continued to grow, with registrations surpassing 1.31 million units in May 2025.
• Battery installations climbed significantly, supporting baseline electrolyte consumption. However, procurement discipline in the supply chain limited the impact on phosphorus pentachloride offtake.
North America
• Phosphorus Pentachloride Price Index: Prices held mostly steady through Q2 2025, supported by contract-based purchases from battery and chemical manufacturers.
• Why did the price of Phosphorus Pentachloride change in July 2025 in North America? Prices were stable, underpinned by modest demand from battery and flame-retardant sectors, while downstream buyers avoided large spot purchases due to market uncertainty.
• Phosphorus Pentachloride Price Forecast for Q3 2025: A stable price range is anticipated, with mild volatility depending on U.S. battery material expansion and international freight trends.
• Phosphorus Pentachloride Production Cost Trend: Input costs remained balanced, with minor fluctuations in chlorine and PCl3 sourcing. Freight and energy prices stayed favorable.
• Phosphorus Pentachloride Demand Outlook: Battery manufacturing offered steady consumption, but non-energy chemical segments remained sluggish. Procurement stayed conservative.
• Automotive Sector: NEV production in the U.S. continued at a gradual pace.
• Gigafactory expansions and powertrain investments supported stable demand for phosphorus pentachloride-containing electrolyte additives.
Europe
• Phosphorus Pentachloride Price Index: European prices saw minor volatility in Q2 2025 due to mixed trade flows and inventory repositioning.
• Why did the price of Phosphorus Pentachloride change in July 2025 in Europe? Prices remained subdued as import flows from China continued with little disruption, but local demand stayed tepid amid macroeconomic headwinds.
• Phosphorus Pentachloride Price Forecast for Q3 2025: Market expectations lean toward a flat-to-soft trajectory, barring an unexpected uptick in battery manufacturing or regulatory-driven demand.
• Phosphorus Pentachloride Production Cost Trend: Europe relied heavily on Asian imports. Despite firm upstream costs in China, the impact was dampened by steady logistics and subdued regional markups.
• Phosphorus Pentachloride Demand Outlook: Local demand remained underwhelming, with slow restocking in electrolyte manufacturing.
• Regulatory costs and automotive sector headwinds discouraged bulk procurement.
• Automotive Sector: European EV sales showed moderate growth, but production was hampered by cost challenges and slow economic recovery.
• PCl5 demand stayed tethered to steady, rather than expanding, consumption.
For the Quarter Ending March 2025
North America
In the first quarter of 2025, the North American market for Phosphorus Pentachloride remained largely influenced by global price trends, with APAC continuing to dominate production and supply. The market in North America saw relatively stable conditions, with minimal fluctuations in pricing as a result of consistent, though moderate, demand. The primary application in the region remains centered on the electrolyte sector, especially in battery manufacturing for electric vehicles (EVs).
However, due to cautious procurement strategies and the slower-than-expected growth in the EV sector during Q1, the demand for Phosphorus Pentachloride remained subdued. Supply disruptions from APAC, particularly stemming from limited availability and logistical challenges, had a modest impact on the North American market, though these were not significant enough to cause major price fluctuations.
In addition, high inflation and interest rates have been impacting purchasing patterns, with many North American buyers focusing on inventory optimization and reducing speculative stockpiling. While supply remained consistent, the weak demand from battery manufacturers and overall moderation in industrial activity slowed down market dynamics. Overall, North America continues to be a net importer, largely dependent on international supply chains, particularly from APAC.
APAC
In the first quarter of 2025, the Phosphorus Pentachloride market in China experienced fluctuating trends, with prices generally showing a slight upward movement by the end of the period. The market started the year with a decline in prices due to reduced demand, particularly from the downstream electrolyte sector. This slowdown was attributed to lower demand from battery cell manufacturers and high stockpiles from pre-holiday purchases, which tempered market activity in January and early February.
As February progressed, market conditions stabilized, with a mild rebound in demand from the electrolyte producers. This was accompanied by a slight increase in prices, driven by higher upstream phosphorus costs. Despite this, demand for Phosphorus Pentachloride remained constrained, particularly in the automotive sector, where sales of new energy vehicles showed a slowdown due to seasonal factors. However, some signs of recovery were noted by the end of February, with increased activity in the electrolyte market as the post-holiday demand picked up.
By March, the market saw another modest price increase, supported by steady manufacturing activity and stable supply from producers. The demand from the electrolyte industry remained stable but cautious, with manufacturers continuing to produce based on orders. The overall demand in the automotive sector showed mixed signals, with lower sales in February compared to January, although government incentives supported year-on-year growth.
Europe
Europe's Phosphorus Pentachloride market in the first quarter of 2025 mirrored similar trends seen in North America, where APAC’s dominance played a crucial role in pricing and supply dynamics. The European market was characterized by relatively stable demand, especially from the battery sector, but was notably impacted by the same global supply constraints and logistical challenges affecting other regions.
The demand for Phosphorus Pentachloride in Europe remained moderate as European manufacturers of batteries for electric vehicles and other industrial sectors showed cautious procurement behaviors due to ongoing economic uncertainties and high energy prices. Despite these challenges, the European market benefited from the region's stable industrial output, although the demand growth rate in Q1 did not meet previous expectations. This was partly attributed to reduced production activities in January and February, especially following the holiday season, which affected both supply and demand dynamics.
In terms of supply, Europe continued to rely heavily on imports from APAC, with few disruptions to availability, although high logistical costs and longer lead times remained an issue. Manufacturers in Europe adjusted their purchasing strategies to mitigate risks, balancing just-in-time inventory practices with the ongoing volatility of international supply chains.
For the Quarter Ending December 2024
North America
The North American Phosphorus Pentachloride market in Q4 2024 exhibited a mixed price trajectory, largely influenced by the dynamics of the global battery market. Initially, the quarter witnessed relative price stability amidst an oversupplied market and reduced consumer inquiries.
This oversupply, driven by factors such as increased production capacity and lower-than-expected demand from battery manufacturers, exerted significant downward pressure on prices. While demand from the EV sector, particularly in the US, showed promising growth, it was insufficient to offset the impact of oversupply. Towards the end of the quarter, prices began to decline further, primarily due to cautious purchasing behavior from battery manufacturers and EV makers.
This cautious approach was influenced by factors such as tightening regulations in key markets and concerns about the overall economic outlook. Despite these challenges, the North American Phosphorus Pentachloride market demonstrated some resilience. The growing demand for EVs in the region, albeit at a slower pace compared to other markets, continued to support the market. However, the overall market sentiment remained subdued, with concerns about oversupply and potential price volatility persisting.
APAC
The APAC Phosphorus Pentachloride market in Q4 2024 exhibited a volatile price trajectory, influenced by a complex interplay of supply and demand factors. The quarter commenced with a decline in prices due to weak consumer demand and ample material availability. Subsequently, prices remained stable for a brief period, followed by a further decline in November driven by a significant decrease in Yellow Phosphorus prices, a key raw material. This downward trend continued into December, further impacted by reduced operating rates among Yellow Phosphorus producers and elevated chlorine prices. While demand from the downstream battery manufacturing sector remained relatively stable throughout the quarter, driven by robust NEV sales in China, the impact of weak demand for ternary cathode materials and a challenging cost environment exerted significant downward pressure on prices. Overall, the Q4 2024 price trend for Phosphorus Pentachloride in the APAC region was characterized by a downward bias, with prices experiencing both declines and periods of stability in response to shifting market conditions.
Europe
The European Phosphorus Pentachloride market in Q4 2024 exhibited a mixed price trajectory. The quarter commenced with a bearish trend, primarily driven by a significant influx of cheaper imports from Asia. Declining freight charges and increased container availability further exacerbated the downward pressure on prices. While Chinese producers-initiated efforts to curb output, these measures were proven insufficient to stabilize the market. A notable shift occurred mid-quarter, with prices experiencing a gradual increase. This upward trend was primarily attributed to rising production costs in major exporting nations, particularly driven by increased Phosphorus Trichloride prices and higher demand from the domestic market. However, European demand remained relatively subdued, with limited impact on the overall market dynamics. Towards the end of the quarter, prices experienced further appreciation due to the arrival of higher-priced imports from China. Rising demand for electrolytes from Chinese battery cell manufacturers, coupled with increased production costs, significantly impacted export prices. Despite this upward pressure, European demand remained weak, with no significant supply shortages observed in the region.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for phosphorus pentachloride faced a significant downturn, with prices experiencing a sharp decline compared to the same period last year. This drop was driven by several factors, including weak demand, high inventory levels, and sluggish purchasing activity. Additionally, an increase in imports and limited cost support from upstream sectors further intensified the downward pressure, reinforcing the overall negative sentiment in the market.
In the U.S., which witnessed the most significant price fluctuations, the trend mirrored the broader North American landscape, with prices beginning to decline early in the quarter due to ongoing challenges. This downward momentum continued throughout the latter half of the quarter, reflecting a sustained decrease in pricing.
By the end of Q3 2024, prices for phosphorus pentachloride had settled at lower levels, highlighting a challenging market environment characterized by oversupply and weak demand. The pricing trend for phosphorus pentachloride in North America during this period remained consistently negative, shaped by an excess of supply, lackluster market demand, and difficult conditions affecting both upstream and downstream sectors.
APAC
In Q3 2024, Phosphorus Pentachloride market noted mixed trends with China facing most volatility. In July, the prices of Phosphorus Pentachloride in the Chinese domestic market saw an uptick, driven by increased cost pressures from upstream raw materials, particularly yellow phosphorus. Despite this rise, demand from the downstream battery manufacturing sector has remained lackluster amid sluggish consumption patterns. August brought further price increases for Phosphorus Pentachloride, as firm support from both the yellow phosphorus and Phosphorus Trichloride markets persisted. However, demand from the battery manufacturing sector continued to falter, indicating an ongoing challenge for this segment. The new energy vehicle market underperformed expectations, with sales of pure electric vehicles rising by just 11% year-on-year during the first half of the year, significantly lagging behind the impressive 88% growth rate in plug-in hybrid vehicle sales. In September, the prices of Phosphorus Pentachloride experienced a downturn in the Chinese domestic market due to weak consumer demand. This decline was exacerbated by diminished support from the upstream yellow phosphorus and phosphorus trichloride markets. The persistent weakness in demand from the downstream battery manufacturing sector further compounded the situation, reflecting sluggish consumption trends.
Europe
In Q3 2024, the European market for phosphorus pentachloride experienced a continued decline in prices, reflecting a bearish sentiment influenced by several key factors. Oversupply issues, coupled with weak demand from both Asian and North American markets, significantly contributed to the downward pressure on prices. Additionally, the absence of substantial cost support from upstream sectors exacerbated the pricing challenges for phosphorus pentachloride throughout the quarter.
The challenging market environment was characterized by elevated inventory levels and sluggish consumer demand, further intensifying the downward pricing trend. European producers encountered additional difficulties, including rising production costs, diminished demand from downstream industries, and deteriorating economic conditions, all of which compounded the tough circumstances within the phosphorus pentachloride market. Notably, countries like Belgium and Germany experienced the most significant price fluctuations in the region. The steep year-on-year decline in prices underscores the difficult market conditions, while the quarter-on-quarter changes, along with the marked differences between the first and second halves of the quarter, highlight the persistent downward trajectory for phosphorus pentachloride prices.
Frequently Asked Questions (FAQs):
1. What is the current price trend of Phosphorus Pentachloride in APAC?
As of June 2025, prices of phosphorus pentachloride in China were assessed at USD 685/MT FOB Shandong.
2. What is the current price trend of Phosphorus Pentachloride in North America?
Prices held largely steady in Q2 2025, supported by contractual offtake from the battery and chemical sectors.
3. What is the current price trend of Phosphorus Pentachloride in Europe?
European prices remained relatively stable but muted, influenced by weak demand and stable Chinese supply.
4. Why did Phosphorus Pentachloride prices change in July 2025?
o APAC: Just-in-time procurement, stable battery demand, and firm feedstock costs likely kept prices from rebounding.
o North America: Prices likely held steady due to limited spot activity and steady battery-sector consumption.
o Europe: Prices likely remained subdued as buyers kept low inventories and macroeconomic concerns persisted.
