How export suspension and resurgence of Covid in China affecting the Global Yellow Phosphorus Market

The Yellow Phosphorus market observed numerous alterations in the pricing trajectory throughout this month. Although the market sentiments have remained bullish since mid-March amidst the seasonal peak for fertilizers in China, the soaring fertilizers problem is another challenge that farmers are facing across the globe after the suspension of the exports of phosphate-based fertilizers to the overseas market by the Chinese authorities.

Overall, the focus on domestic Yellow Phosphorus in China consistently rises as the trading atmosphere on the site was general and the supplies were tight amidst the resurgence of COVID in China. Currently, the Chinese authorities took strict measures to contain the fast pace spread. Although the measures largely impacted the market dynamics, the onloading and offloading activities at the ports were affected and the international express traffic exceeded the required margin. Despite that, Yellow Phosphorus is one of the major commodities that remain bullish against the current spot dynamics in the Asia Pacific region.

In the current week, the Yellow Phosphorus market fluctuated on higher ground, the current tight supply of the upstream raw material due to the eastern European conflict also weighed on the production margin. Whereas, the persistent demand from the downstream market strengthened the producer's will to raise the offered quotations for Yellow Phosphorus throughout the Asia Pacific region.

As per ChemAnalyst, the Yellow Phosphorus market in China constantly fluctuates throughout March and the prevailing sentiments are likely to remain bullish in the forthcoming period. Whereas, the Southeast Asia suppliers were majorly concerned about higher freight charges and hovering uncertainties at the spot market across the Asia Pacific. It is also anticipated that the prices for Yellow Phosphorus are likely to remain strong in the forthcoming period.