For the Quarter Ending June 2025
Asia-Pacific (APAC)
• The Phosphorus Trichloride Price Index in China saw a modest quarter-on-quarter decline of 3.6%, settling around USD 835 per tonne FOB Shanghai by June-end.
• Why did the price of Phosphorus Trichloride change in July 2025 in China? Prices softened in early July, reflecting muted restocking and reduced urgency from downstream agrochemical formulators.
• Phosphorus Trichloride Price Forecast for Q3: Prices are expected to remain stable-to-soft, as the agrochemical high season winds down and international buyers remain conservative amid uncertain macroeconomic conditions.
• Upstream cost pressures could persist but are unlikely to outweigh demand-side weakness.
• Phosphorus Trichloride Production Cost Trend: The cost trend remained firm through Q2, underpinned by elevated yellow phosphorus prices, driven by ore scarcity and tight inventory levels.
• Chlorine prices also saw temporary increases in June, modestly pushing up total production costs.
• Phosphorus Trichloride Demand Outlook: Demand was mixed across Q2. The spring planting season boosted short-term pesticide demand in March–April, but overcapacity in agrochemicals and global inventory liquidation prevented stronger call-offs.
• Non-pesticide applications like flame retardants and plasticizers remained sluggish. Export volumes to Southeast Asia held firm but did not materially impact domestic pricing.
• Agrochemical Sector: China’s agrochemical market entered Q2 with momentum from spring plowing activities, but order activity slowed by late May.
• Despite a projected 8% increase in pest-affected acreage, formulators kept lean inventories due to aggressive competition, tariff-related trade hesitations, and seasonal destocking by overseas buyers.
North America
• The Phosphorus Trichloride (PCl3) Price Index in North America remained broadly stable throughout Q2 2025. Pricing hovered within a narrow range due to steady domestic production, sufficient inventory levels, and largely contract-bound procurement patterns among agrochemical and industrial users.
• Why did the price of Phosphorus Trichloride change in July 2025 in North America? Prices likely remained flat in early July, with balanced demand from pesticide intermediates and phosphorus-based flame retardants, and no significant disruptions in upstream raw material supply.
• Phosphorus Trichloride Price Forecast for Q3: A flat-to-soft trend is anticipated, with contract volumes likely to stay intact but spot demand subdued.
• Any fluctuation may depend on chlorine pricing and seasonal production shifts in the crop protection industry.
• Phosphorus Trichloride Production Cost Trend: Production costs remained manageable. Chlorine and yellow phosphorus availability were adequate, and energy prices held steady. Producers benefited from stable logistics and high operational reliability.
• Phosphorus Trichloride Demand Outlook: The U.S. agrochemical sector showed steady consumption, underpinned by the spring-summer planting cycle. Industrial demand from plasticizers and flame retardants was lackluster.
• Agrochemical Sector: Pesticide application across the U.S. corn and soybean belts supported baseline demand, but cost sensitivity among agricultural input buyers kept PCl3 consumption conservative.
• Many downstream processors preferred just-in-time procurement to avoid inventory risk amid volatile weather conditions and shifting crop protection budgets.
Europe
• The Phosphorus Trichloride (PCl3) Price Index in Europe held largely steady through Q2 2025, with pricing anchored by continued imports from Asia and moderate regional demand.
• Why did the price of Phosphorus Trichloride change in July 2025 in Europe? Prices remained flat or edged slightly lower amid weak seasonal demand and ongoing destocking by agrochemical distributors.
• Phosphorus Trichloride Price Forecast for Q3: A soft-to-stable pricing pattern is expected as inventory drawdowns slow and the agrochemical sector enters a seasonal lull. High energy costs in Western Europe could limit local production flexibility, but imported material will likely anchor price floors.
• Phosphorus Trichloride Production Cost Trend: Domestic production costs remained under pressure due to persistently high electricity and gas prices, particularly in Germany and France. However, these were counterbalanced by cheaper landed costs from Asian exporters, keeping overall market prices stable.
• Phosphorus Trichloride Demand Outlook: European agrochemical producers continued to run plants below optimal rates amid sluggish demand and rising compliance costs.
• End-users in Germany, Italy, and Eastern Europe deferred new purchases, awaiting firmer market direction. Flame retardant demand also remained subdued across the construction and electronics sectors.
• Agrochemical Sector: European pesticide and herbicide makers curtailed bulk production in Q2 due to falling end-user prices and high regulatory burdens.
• Spring sales were lower than expected, and weather variability further complicated seasonal application schedules. As a result, PCl3 demand tracked at minimal contract levels with little spot activity.
For the Quarter Ending March 2025
North America
In the first quarter of 2025, the North American Phosphorus Trichloride (PCl3) market remained heavily reliant on imports, as the region continued to source the majority of its supply from APAC, particularly China. The market was characterized by relatively stable prices, with supply chains functioning smoothly due to pre-holiday stockpiling and minimal disruptions. However, the demand from downstream industries, particularly the agrochemical sector, remained subdued, following global price pressures and cautious procurement strategies.
Despite these challenges, some industries, including agrochemicals, exhibited a modest recovery in demand, which provided some support for market stability. Manufacturing in North America remained steady, but there were signs of caution as firms adopted just-in-time inventory practices, and industrial demand was impacted by high interest rates. Supply-side dynamics in APAC, especially in China, continued to influence North American pricing and availability.
While the quarter saw no significant fluctuations in prices, the market remained sensitive to global shifts in supply, particularly from key producers in APAC. The broader trend pointed to a cautious demand outlook, with market participants adopting conservative strategies, awaiting a clearer economic rebound in subsequent quarters.
APAC
In the first quarter of 2025, the Phosphorus Trichloride (PCl3) market in China exhibited a mixed performance, characterized by stable prices and fluctuating demand. Early in the quarter, market dynamics were balanced, with stable supply from domestic production and adequate inventory levels. However, the agrochemical sector, a major downstream consumer, faced weakened demand due to global price pressures and cautious procurement behaviors. This was compounded by a typical year-end slowdown in consumer spending, which further limited purchasing activity.
As the quarter progressed, prices for Phosphorus Trichloride saw moderate increases, driven by improved consumer demand and higher purchasing activity from downstream industries. Despite these price hikes, the impact of low yellow phosphorus prices continued to exert pressure on costs, although this effect diminished over time. Operational disruptions, particularly in Guizhou, also contributed to some supply constraints, leading to a rise in purchasing activity to secure sufficient material.
Manufacturing activity showed signs of recovery by March, as businesses resumed normal operations following the Lunar New Year holiday. Stimulus measures from the government helped to stabilize the economy, but demand remained cautious, with buyers taking a wait-and-see approach. Despite improvements in some areas, overall demand in the agrochemical sector remained subdued, influencing the broader Phosphorus Trichloride market throughout the quarter.
Europe
In the first quarter of 2025, the European Phosphorus Trichloride (PCl3) market continued to face challenges, largely shaped by global supply dynamics from the dominant APAC region, particularly China. European demand remained subdued, with steady supply levels ensuring stable pricing, but demand from key downstream sectors like agrochemicals faced constraints. The market was largely stable, driven by well-maintained inventory levels and adequate stock from imports.
Supply chains remained functional, but the demand for Phosphorus Trichloride was tempered by high global price pressures and cautious purchasing from European businesses, which were dealing with ongoing economic uncertainties. The agrochemical sector, a significant consumer of Phosphorus Trichloride, showed signs of recovery but remained limited by weak consumer demand and cost pressures.
Additionally, operational constraints in key producing regions like China, including seasonal shutdowns, impacted the global supply chain and created minor delays in product availability. Europe's dependence on APAC for supply continued to shape market dynamics, as price fluctuations in APAC directly influenced European procurement strategies.
For the Quarter Ending December 2024
North America
In Q4 2024, the phosphorus trichloride market in North America experienced moderate price fluctuations, driven by upstream yellow phosphorus trends and downstream agrochemical demand.
Yellow phosphorus, a critical raw material for Phosphorus trichloride production, saw stable prices in October but encountered slight upward pressure in November and December due to tightening supplies and consistent industrial demand. This directly influenced the cost structure of phosphorus trichloride producers. On the demand side, the agrochemical sector, a major consumer of Phosphorus trichloride to produce pesticides and herbicides, exhibited mixed trends.
While the late cropping season maintained steady demand for agrochemicals, the overall market sentiment was dampened by high inventory levels and a slowdown in new orders from agricultural buyers. By December, improved activity in downstream manufacturing and the need to replenish stocks in preparation for the spring planting season spurred a gradual recovery in agrochemical demand, providing some support to phosphorus trichloride prices. The market also faced upward cost pressures from logistical challenges and higher energy prices, particularly in regions affected by weather disruptions.
APAC
The APAC Phosphorus Trichloride market in Q4 2024 exhibited a volatile price trajectory, primarily driven by a combination of weak demand and oversupply. The quarter commenced with a decline in prices due to decreased consumer demand from the agrochemical sector, primarily driven by factors such as reduced crop management activities and lower fertilizer application rates. While there were periods of price stability, downward pressure persisted throughout the quarter. This was further exacerbated by declining prices for Yellow Phosphorus, a key raw material, and increased production capacity, leading to oversupply in the market. Despite some positive developments in the global agrochemical market, including increased sales volumes across various regions, the impact of weak demand in key markets like China, coupled with cautious purchasing behavior from downstream consumers, significantly impacted prices. Overall, the Q4 2024 price trend for Phosphorus Trichloride 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 phosphorus trichloride market in Europe during Q4 2024 faced notable challenges, primarily due to the volatility in upstream yellow phosphorus supply and the mixed performance of the agrochemical sector. Yellow phosphorus prices in the region were relatively stable at the start of the quarter, supported by steady imports and stabilized phosphate rock costs. However, by November and December, reduced exports from Asia, coupled with rising energy prices in Europe, exerted upward pressure on production costs for Phosphorus trichloride manufacturers. These cost increases were partially offset by subdued production rates in several European facilities, as demand from downstream agrochemical industries remained weaker than anticipated. The agrochemical sector, the largest consumer of phosphorus trichloride in Europe, experienced limited growth during the quarter due to seasonal reductions in pesticide and herbicide applications and cautious purchasing activity from distributors. However, toward the end of the quarter, a modest increase in demand was observed as manufacturers began preparing for the upcoming spring planting season. Persistent logistical challenges and high energy costs continued to strain the supply chain, further impacting pricing dynamics.
For the Quarter Ending September 2024
North America
In Q3 2024, the phosphorus trichloride market in North America faced considerable challenges, reflecting broader trends impacting the agricultural sector and the upstream production of phosphorus pentachloride. The market experienced significant price declines amid a combination of weak demand, high inventory levels, and cautious purchasing behavior. The North American phosphorus trichloride market saw a pronounced downturn, paralleling the difficulties faced by the phosphorus pentachloride sector.
Factors such as subdued agricultural demand, adverse weather conditions, and rising import levels contributed to a bearish market sentiment. Throughout Q3, supply constraints arose from plant shutdowns and disruptions, compounding the issues already faced by manufacturers. The volatility in agricultural production has had a direct impact on fertilizer applications, creating uncertainty in the market.
By the end of the quarter, the pricing environment remained challenging, with phosphorus trichloride settling at lower levels, highlighting the ongoing oversupply and weak demand trends. Market participants remain cautious, closely monitoring demand fluctuations and supply chain stability as they navigate the uncertain landscape ahead.
APAC
The third quarter of 2024 has been marked by a consistent decrease in prices for Phosphorous Trichloride in the APAC region. This downward trend can be attributed to several significant factors. Weak consumer demand, particularly in the agricultural and agrochemical sectors, has played a pivotal role in influencing market prices.
Reduced procurement activity and softened offtake markets have led to a decline in overall demand for Phosphorous Trichloride. Additionally, fluctuations in upstream phosphoric acid prices and lower freight charges on global shipping routes have further contributed to the price decrease. China, experiencing the most significant price changes, has seen a 12% decrease compared to the same quarter last year.
In the context of Q3 2024, prices in China recorded a 5.5% decrease from the previous quarter. The second half of the quarter saw a 4% decrease in prices compared to the first half. The latest quarter-ending price for Phosphorous Trichloride Ind. Grade FOB Shanghai in China settled at USD 930/MT, reflecting the overall negative pricing environment and a stable to bearish trend in the market.
Europe
In Q3 2024, the phosphorus trichloride market in Europe faced significant challenges, primarily driven by a bearish sentiment stemming from various market factors. The European market for phosphorus trichloride was heavily influenced by oversupply issues, with weak demand from both the Asian and North American markets contributing to downward pressure on prices.
Elevated inventory levels and sluggish consumer demand further exacerbated the situation, making it difficult for producers to stabilize pricing. Countries like Belgium and Germany experienced the most pronounced price changes, reflecting the broader market challenges. In Germany, adverse weather conditions impacted production capabilities, leading to reduced demand for phosphorus trichloride across various applications, particularly in agriculture and industrial sectors.
Throughout the quarter, the market contended with rising production costs and uncertainties in key markets that placed additional downward pressure on prices. The significant year-on-year decline in prices underscores the difficulties faced by market participants. Moreover, plant disruptions, including maintenance shutdowns at key facilities, contributed to supply constraints and heightened uncertainty in the market.
Frequently Asked Questions (FAQs):
1. What is the current price of Phosphorus Trichloride in APAC?
As of June 2025, phosphorus trichloride prices in China stood at approximately USD 835 per tonne FOB Shanghai.
2. What is the current price of Phosphorus Trichloride in North America?
PCl3 prices in North America were stable through Q2 2025, with little volatility due to firm contract volumes and limited spot activity.
3. What is the current price of Phosphorus Trichloride in Europe?
In Q2 2025, prices in Europe remained steady due to sufficient import availability and subdued downstream demand.
4. Why did Phosphorus Trichloride prices change in July 2025?
o APAC: Prices likely softened slightly on thin restocking and cautious agrochemical demand, despite steady upstream costs.
o North America: Prices likely held steady as seasonal demand was met through planned off-take and stable raw material supply.
o Europe: Prices likely remained stable or edged lower amid ongoing destocking and limited production activity.
