For the Quarter Ending March 2022
In the first quarter of 2022, the North American market for Yellow Phosphorus observes a significant shift in the market dynamics. The domestic market swindled and the prices fluctuated at a range-bound in the first half of the quarter as the power rationing situation resolved in the Chinese and the arbitrage resumed by the end of the last quarter. Although, Russia started its special military operation in Ukraine created several uncertainties as the food pricing index persistently soared and the supplies for several major crops were uncertain. In response, several analyses showcased that the US will likely face a food crisis in the short term. Whereas the inquiries remain persistent from the downstream fertilizers and batteries industries. As a ripple effect, it strengthened the will of producers to raise the offered quotations for Yellow Phosphorus in the US domestic market, and the CFR Los Angeles discussions for Yellow Phosphorus were settled at USD 5932 per tonne, during the quarter ending in March 2022.
The Yellow Phosphorus market in the Asia Pacific region witnessed mixed sentiment during the first quarter of 2022. Such developments were majorly attributed to the persistently shifting market dynamics across the region of the Asia Pacific. The impact of the power rationing prevailed throughout the quarter. Although, the market sentiments again pressurized amidst the Lunar New Year holidays in China and Vietnam curtailed the supplies from the domestic market, followed by another fluctuation after Russia carried out its special military operations over Ukraine. The inquiries soared amidst the rising food pricing index and predictions related to the upcoming food crisis in the western nations. Although, the prices of Yellow Phosphorus remain buoyed amidst the adequate demand from the downstream industries. Therefore, the FOB Qingdao discussions for Yellow Phosphorus were settled at USD 5700 per tonne, during the quarter ending in March 2022.
In the first quarter of 2022, the market sentiments for the yellow Phosphorus in the European market remained bullish throughout the first quarter. These sentiments were majorly attributed to the staggering market dynamics for Yellow Phosphorus as the producer's quotations consistently strengthened amidst the supply constraints. Whereas, the conflict between Russia and Ukraine gyrated several commodities and the freight cost provided additional cost support to the quotations for Yellow Phosphorus. In addition, the Suez Canal authorities increased the tax rate by 5% which further pressurize the imported cargoes from the Asia Pacific. As a ripple effect, the quotations for the Yellow Phosphorus remain buoyed Europe.
Quarter Ending December 2021
The Yellow Phosphorus market in North America eased after soaring to the historic high after taking cost support from the high freight charges. However, the offers remained buoyed in the US domestic market due to the seasonal demand from the downstream Fertilizers and EV batteries end-use sector. Whereas, the supplies were tight due to delayed deliveries from Southeast Asia, whereas numerous authorities across the globe restrict the export of ammonia and phosphate-based fertilizers amidst the rising food pricing index uplifted the market sentiments of Yellow Phosphorus in the US domestic market. In November a major player in the US imported 240 tonnes of Yellow Phosphorus at the rate of USD 4700 per tonne on a contractual basis.
In the Asia Pacific market, the Yellow Phosphorus market players took a big relief after the freight charges dropped by 25% for the overseas and regional deliveries. However, the restricted availability induced some hindrance in the Asian market after the deliveries were delayed and inquiries pile up. Whereas the persistent efforts made by the Chinese authorities curb the power rationing to some extent and the operating rates improve significantly in China. As a ripple effect, the Ex-Works Yunnan (China) discussion witnessed a drop of 25.13% with monthly average prices settled at USD 6090 per tonne in December.
In the fourth quarter of 2021, the European market for Yellow Phosphorus witnessed a slight relief after the offers from the Southeast Asian and Chinese suppliers eased after the freight charges were lowered and the operational rates in China rebounded substantially. However, the raw material market throughout Europe was drastically impacted by the ongoing energy crisis, and the export quota raised by the Russian authorities raised concerns regarding the supply glut for the downstream fertilizer sector and batteries electrolytes industries. As a ripple effect, the offers for Yellow Phosphorus remained firm throughout the fourth quarter of 2021 in the European domestic market.