On September 8, an earthquake of magnitude 6.8, followed by the next earthquake on September 14 with a magnitude of 4.8 in Morocco, the World’s Phosphate rock ores giant and a key Phosphorous Phosphoric Acid producer, caused severe damage. As Morocco exports Phosphoric Acid prominently to India, Turkey, and Brazil, the demand was firm from the importers. However, there was a slight affliction in supply rates from Morocco due to the occurrence of earthquakes.

In the South American region, the increase in crop cultivation activities in the agriculture sector in August and the preparation of the next planting and sowing season raised the demand for Phosphoric Acid to produce downstream Di Ammonium Phosphate DAP and Mono Ammonium Phosphate MAP fertilizers. In August, the Di Ammonium Phosphate supplies were affected in the South American market due to delayed shipping routes activities through the Panama Canal and a hike in freight charges.

The orders for Phosphoric Acid were firm from South Asia amid consistent demand for DAP and MAP application in the agriculture sector during the Autumn season. The El Nino effect is prominent, and its effects were observed on the rain patterns during the monsoon season. It created a demand-supply gap in the regional market as the fertilizer application increases during the no-rain days, while heavy rains and storms affect the supply chain activities.

Furthermore, an increase in demand for the Phosphoric Acid raw material Phosphate rock was seen in China during September as the global supplies were affected from Morocco to the World. Meanwhile, trading activities remained limited amid the decline in consumption rates of Phosphoric Acid from Northeast Asia’s fertilizer industries. The application rates of fertilizers and herbicides are stabilizing in the agriculture and Horticulture sectors as the end of the autumn season approaches in Asia. Meanwhile, demand was moderate from cleaning agent manufacturers. At the same time, the occurrence of typhoon Saola in southern China on September 2, 2023, caused a hindrance in the supply rates of Phosphoric Acid to the importers.

As per the sources, the price of Phosphoric Acid in Morocco witnessed USD 1160/MT in August, after an increment of 3% in last month’s quotations.

As per the estimation, the market prices of Phosphoric Acid will remain firm as affliction in Phosphoric Acid supply rates and increased demand from Brazil due to high procurement activities by farmers before the winter crop planting activities will likely raise the market prices. Furthermore, orders are also consistent from Asia due to autumn season application. Hence, the producers will reduce their supply rates to the importers in Q4 2023.