High raw material cost support the high price of Phosphate products
High raw material cost support the high price of Phosphate products
The price of sulfuric acid (one of raw materials of Di-calcium phosphate products) of 2025 is the second high since 2022. (The purple line is 2025, and the orange one is 2022.)
The maintenance of the sulfur plant in the United Arab in first half of 2022 resulted the reduction of approximately 1.5 million tons of sulfur supply. And coupled with the Russo-Ukrainian War, which caused the high price of crude oil and sulfur. So the sulfur acid price also soared sharply in 2022.
The price of sulfuric acid of 2025 has also been very high, even being the second high since 2022, what did cause this?
1. The price of sulfur in the Middle East has risen sharply, thereby increasing the cost of sulfur imports for China.
2. Additionally, other sulfur-consuming countries such as Indonesia and India also have big demand for the sulfur.
3. The inventory of domestic sulfuric acid manufacturer had been at low level.
Look at the chart 1, the lowest price of sulfur acid for 2022 were CNY380.00 in January and September, and the highest price was CNY1100 in April and CNY1080 in May to June.
For 2025, the lowest was CNY490 in January(it's about CNY110 per ton higher than the lowest price in 2022).
High cost of sulfuric acid lead to high price of dicalcium phosphate products (DCP17%,DCP18%, MCP22%, MDCP21%), and it's peak season for MCP now, which are the favorable support for the MCP price.
