The prices of Phosphorus Acid continued to show bullish trend in the USA market. According to the analysts at ChemAnalyst, the prices of Phosphorus Acid surged by 2.2% in the month of September 2024. The prices of Phosphorus Acid continued to increase in the third quarter of the year 2024. The continued bullish trend was observed because of different contributing factors which influenced the pricing of the commodity in the market.

The primary driving factor for increase in the prices of Phosphorus Acid was increased production cost in the market. The prices of Phosphorus trichloride surged in the market leading to increased production cost which pushed the prices in the upward direction in the market. Phosphorus Acid is used as PVC stabilizer. The demand for PVC and production of PVC closely determines the price trend for Phosphorus Acid. Demand from PVC industry remained weak as production of PVC declined due to planned shutdowns and declined demand for PVC in the market. While demand from one downstream sector remained lacklustre demand from other industries such as fertilizer production industry remained robust. From supply side, inventory levels remained limited which pushed the prices further in the market. The production capacity of Phosphorus Acid took a major hit due to the hurricane season as it affected the production of various chemicals in the USA market. Logistical challenges caused by the hurricane season also pushed the prices further in the market.

The overall market sentiment was found to be cautious despite the increase in prices because of potential fluctuations in demand and the ongoing uncertainties in the supply chain affecting the consumer behaviour and demand of Phosphorus Acid in the market. The ongoing economic uncertainties also pushed the prices as the market sentiment remained cautious. The month of September also witnessed decline in interest rates by Federal Reserve to a range of 4.75% to 5% aimed at improving the economic conditions in the country further contributing to the overall economic conditions of the country. The improvement in the economic conditions would have direct impact on the prices of different commodities in the market.

Looking further, the overall market sentiment remained cautious while potential fluctuations in the prices of Phosphorus Acid could be observed due to fluctuating demand and the various economic uncertainties of the market. The analysts predict that prices may stabilize but could also show fluctuations depending on the future demand and market conditions and the corresponding supply chain management by the market participants.