In H2 December, Phosphoric Acid prices experienced a weak decline, influenced by reduced demand for fertilizers like DAP and MAP, which directly impacted Phosphoric Acid consumption. In China, phosphate producers reduced output due to price pressures and firm raw material costs. Meanwhile, in Europe, Phosphoric Acid prices stabilized, supported by consistent pricing from Moroccan exporters, despite weaker demand. Manufacturers adjusted inventories and improved procurement times, while input prices saw a slight slowdown in their decline, signaling modest stabilization in the European supply chain.

In the second half of December, Phosphoric Acid prices experienced a weak decline, with thermal Phosphoric Acid showing noticeable weakness, while wet-process Phosphoric Acid prices fluctuated slightly. The cost support from phosphorus yellow weakened as market prices fell amid cautious downstream procurement and a decrease in new orders. Additionally, operating rates for phosphorus yellow plants declined, leading to a reduction in overall market supply. Despite a slight recovery at the end of the month, the overall sentiment remained weak, driving the downward trajectory in Phosphoric Acid prices.

On the demand side, phosphate producers in China have adjusted their output levels in response to persistent downward pressure on product prices and firm raw material costs. Production rates for both DAP and MAP averaged around 55% nationwide, reflecting a slight decline of 1% and 2%, respectively, compared to the previous week. This cautious production approach indicates subdued downstream demand and efforts to manage inventory levels amid ongoing market uncertainties.

In the European market price of the Phosphoric Acid witnessed a stability in H2 Dec. This stability in the price is majorly attributed to the consistent pricing from the key exporters in the Moroccan market. However, The weakened demand for DAP and MAP directly impacts Phosphoric Acid demand, as these fertilizers rely on Phosphoric Acid as a key raw material. Reduced fertilizer demand leads to lower Phosphoric Acid consumption, with manufacturers facing challenges in procurement due to affordability and tight availability. As DAP and MAP demand slows, Phosphoric Acid demand also experiences downward pressure.

Phosphoric Acid supply in Europe remains adequate, with no significant disruptions in port operations. However, weak demand in December prompted manufacturers to reduce both pre-production and production inventories, though the depletion rate slowed to its lowest in ten months. Purchasing activity continued to decline, which led to improved delivery times and vendor performance, while suppliers offered better material availability. Despite a prolonged price decline for the past 23 months, the fall in input prices was the weakest in four months, signaling a slight stabilization in supply conditions for Phosphoric Acid in the European market.

According to ChemAnalyst's forecast, Phosphoric Acid prices are likely to experience a downward trend in the upcoming sessions. This expected Phosphoric Acid price decline is attributed to anticipated weaker demand from the downstream fertilizer sector and the adequate supply of Phosphoric Acid, which will influence global pricing dynamics towards the downside.