2024.10.14-2024.10.18 Weekly summary of phosphate rock and phosphoric acid
Phosphate Rock:
The price of phosphorus ore is no change this week. Mining and transportation in Yunnan, Guizhou, and Hubei are normal. Some mining companies in Northern area has gradually resumed production, but some are still shut down due to environmental protection inspections, resulting in a decrease in market supply.
For 28% grade raw ore: Reference price in Guizhou is 940-960 yuan per ton; reference price in Yunnan is 890-910 yuan per ton; reference price in Hubei is 1000-1020 yuan per ton.
For 30% grade raw ore: Reference price in Guizhou is 1030-1050 yuan per ton; reference price in Hubei is 1030-1050 yuan per ton; reference price in Yunnan is 940-960 yuan per ton.
International market: 27% grade phosphorus ore from Jordan CFR USD97.00/MT, 30% grade phosphorus ore CFR USD130/MTS.
Yellow phosphorus:
The price of yellow phosphorus first rose and then stabilized this week.
On the cost side: The price of coke continues to rise and the electricity prices in Yunnan and Sichuan will rise in November, which resulting in a positive support for the cost.
Supply and operating rate: Due to environmental protection inspections the operating rate of yellow phosphorus producer continued to decline this week. Some yellow phosphorus enterprises in Sichuan and Guizhou have shut down for maintenance, and a few enterprises have reduced production. The market supply continues to decrease.
On the demands side: There are still a few customers with rigid demand for purchase, and traders have also begun to replenish their stocks. Therefore, yellow phosphorus producers continue to raise prices; however, most downstream customers are cautious for the high prices.
Thermal phosphoric acid:
The FOB Fangcheng price for 35KG thermal phosphoric acid is USD1038.00 to USD1090.00 this week, increased by USD60 per ton.
Thermal phosphoric acid prices keep stable this week. The yellow phosphorus price raised up but the demands still did not improve.
On the cost side: From last Friday till this Tuesday, yellow phosphorus price increased by CNY600.00 per ton, resulting in cost of thermal phosphoric acid increase.
On the demand side: Demands is weak and less of transaction.
On the supply side: the operating rate of thermal phosphoric acid is same with last week.
Expected that the price of thermal phosphoric acid will keep stable last week, because of the environmental protection inspections in some areas, the operating rate will decline next week. And the price of wet process phosphoric acid raise and tight supply, which may caused the customers purchase thermal phosphoric acid.
Wet purified phosphoric acid:
The price of wet-process purified phosphoric acid remained stable with a slight increase this week. The producers of wet-process purified phosphoric acid have sufficient pending orders, so the quotation remained the same with last week, and some companies slightly raising the prices.
On the supply side: The market supply volume decreased slightly this week, mainly due to the temporary shutdown of an enterprise in Guangxi, resulting in a slight decrease in production, while other factories continued to operate normally.
On the demand: Downstream demand is weak, and new orders are scarce.
Expected that the price of wet-process purified phosphoric acid will continue to remain stable or stable with a slight increase next week. Next month, one of factories will suspend production for maintenance about 20 days, which will further reduce market supply. In addition, at present, factories have sufficient pending orders and with low inventories, and sufficient production scheduling. Downstream iron phosphate and lithium iron phosphate producers maintain a stable demand for wet-process purified phosphoric acid. If market supply decreases, it will drive up prices.
Sodium carbonate:
The domestic sodium carbonate market has not changed this week.
On the supply side: The operating rate is same as last week. Factory inventories showing an upward trend, and the market supply is sufficient;
On the demand side: new orders are limited and slow.
Expected that the price of sodium carbonate may decline next week, mainly because the market supply is sufficient, and the procurement driving force on the demand side is insufficient.
