9.16-9.20 Weekly summary of phosphoric acid and raw materials
Weekly market summary of phosphoric acid and raw materials(9.16-9.20)
Phosphate Rock:
The mining and transportation of mines in the main production areas of China are generally normal. Most mines still focus on delivering the pending orders. The price of phosphate rock has not changed this week. The decline in the price and operating rate of MAP DAP has had a great impact on the sentiment of the phosphate market. The bearish sentiment of phosphate traders has increased, but the mentality of mines is relatively strong and the price is stable.
Yellow phosphorus:
The yellow phosphorus market was in a state around the Mid-Autumn Festival, with production increasing slightly, but the demand after the holiday was insufficient, making it difficult to sell at high prices, and prices fell slightly.
Supply: One of yellow phosphorus enterprise in Sichuan Province had previously been reducing daily capacity, but has now resumed normal production. The overall market supply is sufficient.
On the demand: Demand was weak and new orders were few, but as the National Day holiday was approaching, some companies still had plans to purchase yellow phosphorus.
Forecas :
Positive：
As the National Day holiday approaches, most downstream companies have limited raw material inventories. In order to ensure production, they still have purchasing plans for yellow phosphorus. Some yellow phosphorus companies still have much pending orders and have no pressure to sales. In addition, the flood season is about to pass, and some companies have plans to make inventory. Expected that will be in a state of supply and demand game and factories will maintain a low-price reluctance to sell mentality.
Passive:
At present, the operating rate of yellow phosphorus is well, and yellow phosphorus factories have no plans to stop or reduce production in the short term; some factories have small inventory capacity, and in order to ensure normal production during the National holidays, expected that there will be a plan to clear inventory before the holidays. The demand for downstream products has not improved significantly, and it is difficult to follow the price increase, so it is expected that the acceptance of high prices for yellow phosphorus will be low.
Thermal phosphoric acid:
The overall market transaction was few this week due to the Mid-Autumn Festival. Factories focus on delivering the pending orders after the holiday, and new orders are rare.
For the cost, most yellow phosphorus factories maintained a stable price and not willing to sell yellow phosphorus at low prices. The cost support of thermal phosphoric acid was stable.
For the supply and demand, the thermal phosphoric acid market mostly adopted a wait-and-see attitude, with overall production operations remaining stable and the focus on delivering previous orders; downstream users are still inquiring for orders but are not will to conclude the transactions with high price, so adopted a wait-and-see.
Forecast: Expected that the market price of thermal phosphoric acid will remain stable next week. the cost of thermal phosphoric acid is stable; as the National Day holiday is approaching, some downstream companies have plans to stock up before the holiday.
Wet purified phosphoric acid:
The price of wet-process purified phosphoric acid stopped rising this week, and the supply is sufficient. After the Mid-Autumn Festival, the transactions or new order are rare.
For the supply, the tight supply has improved, due to one of major factory's has resumed production, and other factories has gradually resumed production.
For the demand, the consumption of downstream companies is stable and purchase purified acid on demand, but some companies still purchase cautiously.
Forecast:
Expected that the wet-process purified phosphoric acid will continue to remain stable next week.
1. At present, wet process purified acid supply is sufficient and it is expected that the downstream companies have procurement plan due the National Day holiday and long-distance transportation, the purified acid companies are willing to selling. It is reported that some areas in the southwest will have environmental protection inspection, keep pay attention on it in the near future.
2. Pay attention to the operation of downstream iron phosphate plants. It is not excluded that due to the impact of the National holiday, the downstream will inquire and purchase in advance, and the market will increase in trading, which is good for the price of purified acid. In addition, the domestic new energy market demand is expected to increase, but it is not excluded that some factories may continue to maintain a cautious price reduction mentality, and it is difficult to negotiate at high prices, and the transaction is close to the low-end. On the export side, there are sufficient orders, which supports domestic prices.
3. Pay attention to the price of yellow phosphorus and thermal phosphoric acid.
