For the Quarter Ending September 2024
North America
In Q3 2024, the North American region witnessed a notable increase in Phosphoric Acid prices, with the USA experiencing the most significant fluctuations. This quarter has been characterized by a surge in prices attributed to a combination of factors. In terms of feedstock market Phosphate rocks price witnessed stability while the Sulphuric Acid marked an increment of 11.59% from a quarter ago.
Market dynamics have been influenced by a rise in global demand, particularly from key sectors such as agriculture and food processing, leading to supply constraints and driving up prices. Additionally, ongoing geopolitical tensions and logistical challenges due to hurricane effect have further strained supply chains, contributing to the price uptrend.
The USA, in particular, has seen the maximum price changes, with a 1.53% increase from the previous quarter. Despite a 2.47% decrease compared to the same quarter last year, the overall trend has been positive, reflecting a strengthening pricing environment. This quarter ended with Phosphoric Acid priced at USD 1045/MT 85% FOB-Texas in the USA, highlighting the prevailing upward trajectory in pricing.
APAC
Throughout Q3 2024, the pricing of Phosphoric Acid in the APAC region has seen a notable upward trend, driven by several key factors. One significant influence on market prices has been the steady increase in demand from various downstream sectors, particularly in agriculture and industrial applications. Additionally, the tightening supply of key feedstocks such as phosphate rock and sulfuric acid has further contributed to the rising prices. In the current quarter the price of the Sulphuric Acid witnessed an increment of 58.06%.
China, in particular, has experienced the most significant price changes, with a focus on maintaining a balanced supply-demand scenario amidst fluctuating market dynamics. The overall trend in pricing has shown a positive trajectory, reflecting seasonal variations and correlations in price changes.
Compared to the same quarter last year, prices have decreased by 14.20%, while the quarter-on-quarter change in 2024 remained stable at 0%. As the quarter comes to a close, the latest price for Phosphoric Acid stands at USD 870/MT FOB-Qinzhou in China, marking a continued upward trend in the pricing environment.
Europe
In Q3 2024, the European Phosphoric Acid market-maintained price stability, shaped by several key factors. A major contributor to this steady pricing was the consistent pricing strategies employed by leading Moroccan exporters. Additionally, the balanced supply-demand dynamics, along with steady import activities across the region, helped sustain price stability throughout the quarter.
The Netherlands, however, saw the most notable price fluctuations during this period. Declining freight charges across key routes also played a significant role in ensuring a stable supply chain, supporting overall market equilibrium. Despite the broader stability, price trends in the Netherlands varied, reflecting the region’s inherent market volatility. Seasonal factors and overall trends aligned with price shifts, leading to a 13.20% year-on-year decline.
However, compared to the previous quarter in 2024, prices rose marginally by 0.64%. By the end of the quarter, Phosphoric Acid Industrial Grade FD Rotterdam in the Netherlands was priced at USD 1075/MT, underscoring the sustained stable pricing environment, with only slight variations due to local market conditions.
MEA
In Q3 2024, the Phosphoric Acid market in the MEA region experienced a marginal increase in prices, with only slight fluctuations compared to the previous quarter. The quarter was marked by consistent pricing, driven by several factors such as stable feedstock costs, well-balanced supply chains, and moderate demand levels. Morocco, in particular, saw some notable price movements during this period. Demand from overseas markets also remained stable, while surplus inventories from key manufacturers helped maintain balanced pricing dynamics. Despite an 18.85% decrease in prices compared to the same period last year, the market showed a slight 1.26% increase from the previous quarter in 2024. By the end of the quarter, the price for Phosphoric Acid in Morocco stood at USD 920/MT FOB Casablanca, reflecting a stable pricing environment overall. Market trends and seasonality supported a balanced landscape, highlighting the market's resilience amidst broader global economic challenges. Additionally, moderate demand for DAP and MAP from India played a role in shaping the overall demand for Phosphoric Acid in the Moroccan market during the period as it is the biggest importer of the Phosphoric Acid from Morocco.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Phosphoric Acid market experienced a positive pricing environment, characterized by a steady increase in market prices. Several significant factors played a crucial role in influencing this upward trend. Foremost among these was the persistently high price of Sulphuric Acid, a vital feedstock for Phosphoric Acid production, exerting continuous upward pressure on prices.
Additionally, the demand from downstream markets, particularly the fertilizer sector, remained muted. Shipment delays and supply-demand imbalances also contributed to the escalating market trends, exacerbated by logistical challenges and potential disruptions at key ports. Focusing on the USA, the region saw the most pronounced price changes. The overall trends exhibited a clear correlation with seasonal demands and supply constraints, where prices remained robust due to heightened agricultural activity during the spring season.
This quarterly increment mirrored the 1.2% rise from the previous quarter in 2024, indicating sustained market strength. Concluding the quarter, the price of Phosphoric Acid 85% DEL Florida in the USA settled at USD 975/MT. The pricing environment throughout Q2 2024 has been definitively positive, driven by, supply constraints, and rising input costs, heralding a bullish market sentiment for Phosphoric Acid in North America.
APAC
The second quarter of 2024 has been challenging for the Phosphoric Acid market in the Asia-Pacific (APAC) region, with a pronounced decreasing trend in prices. Several significant factors contributed to this decline, including a subdued demand from downstream industries such as fertilizers and food & beverages, and a general bearish sentiment across the market. The weak performance in the upstream phosphate rock market further exacerbated the situation. Additionally, persistent supply chain disruptions and logistical challenges, compounded by soaring shipping costs, have contributed to the downward pressure on Phosphoric Acid prices. The destocking activities by market participants also played a role as they showed lower enthusiasm for fresh inventory accumulation, anticipating further price reductions. Focusing on South Korea, which has experienced the most pronounced price changes, the overall trend has been distinctly negative. The quarter-on-quarter decline from the previous quarter of 2024 was recorded at -3.4%, reflecting a continuous downward trend. The quarter-ending price for Phosphoric Acid Food Grade 85% CFR-Busan in South Korea was USD 864/MT, underscoring the overall negative pricing environment. The consistent decrease in prices throughout this quarter indicates a bearish market sentiment, reflecting the challenges faced by the industry.
Europe
In Q2 2024, the Phosphoric Acid market in Europe has experienced a discernible downward trend in pricing, driven primarily by a confluence of factors that have exerted significant pressure on the market. Additionally, delays in shipments and escalating freight charges have exacerbated the situation, adding to the overall operational costs. A notable return to operations at the Lifosa phosphates plant further augmented supply, creating an environment of overabundance relative to the moderate demand levels. These dynamics collectively underscored a complex supply chain situation, leading to reduced price points across the region. Focusing on Germany, which has seen the most pronounced price changes, the overall trend has been markedly negative. This quarter also witnessed a -2.4% decrease from the previous quarter of 2024, highlighting consistent bearish sentiment. The price comparison between the first and second halves of the quarter also reflected a -2.4% decline, reinforcing the negative pricing environment. The concluding price for Q2 2024 stands at 1110 USD/MT for Industrial Grade Phosphoric Acid FD Hamburg, encapsulating the overarching sentiment of a subdued and challenging market landscape.
MEA
In Q2 2024, the pricing environment for Phosphoric Acid in the MEA region has been characterized by a notable downward trend, driven by several influential market factors. The quarter witnessed a significant -21.2% decrease in prices compared to the same period last year, reflecting negative market dynamics. Contributing factors include subdued demand from downstream industries, particularly fertilizers, and ongoing global supply chain disruptions. Lower-than-usual activity from key international importers exacerbated the decline, alongside subdued supplier enthusiasm for price increases. Additionally, ample inventory levels maintained by suppliers discouraged aggressive pricing strategies, leading to a stabilized yet declining market. Focusing exclusively on Morocco, the region experienced the maximum price volatility, underscoring the overall negative sentiment prevalent throughout the quarter. The quarter price trend indicated a -0.5% change from the previous quarter in 2024, reflecting a consistent downward trajectory. The seasonality effect, coupled with strategic supplier actions to manage inventories, contributed to these price fluctuations. Despite the balanced demand and supply dynamics, the overall trend remained bearish. The latest quarter-ending price for Phosphoric Acid in Morocco is USD 925/MT FOB Casablanca, encapsulating the quarter's persistent negative pricing environment.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American market for Phosphoric Acid continued to face challenges and fluctuations. The prices of Phosphoric Acid experienced significant changes, primarily influenced by various factors.
Another factor affecting the market was the subdued demand both domestically and overseas, leading to suppliers destocking their inventories. This further contributed to the fluctuations in prices. However, despite these challenges, there is an expectation of a small retracement in the price of Phosphoric Acid in mid-May. The latest price for Phosphoric Acid 85% DEL Florida in the USA for Q4 2023 was recorded at USD 945/MT.
Moreover, in January 2024, the market experienced more than two shutdowns. One shutdown occurred at the unit of Hooker Chemical Company in Texas, and the other at the unit of Stauffer Chemical Company, also in Texas. These shutdowns were a result of extreme subfreezing weather conditions, and the duration of the shutdowns was uncertain. These disruptions in production further impacted the supply of Phosphoric Acid in the market.
APAC
During the first quarter of 2024, the pricing of Phosphoric Acid in the APAC region remained steady. Suppliers adopted a cautious approach, resulting in a delicate balance between supply and demand dynamics. The reduced demand from the fertilizer and food and beverage sectors had a significant impact on the overall pricing trend in South Korea. However, the market experienced a decline primarily influenced by the decrease in prices from major exporter China. Destocking activities were ongoing, ensuring that the supply was sufficient to meet the demand. This led to a decrease in the market price, but no reported plant shutdowns by market participants. Furthermore, the South Korean won depreciated by 15.51% against the United States Dollar on a monthly basis. As a result, the latest price of Phosphoric Acid Food Grade 85% CFR-Busan in South Korea was USD 877/MT. Overall, the pricing trend during the first quarter of 2024 was influenced by the subdued demand outlook and oversupply of Phosphoric Acid in the market.
Europe
During the first quarter of 2024, the Phosphoric Acid market in Europe faced various influences and challenges. The decline in prices was mainly driven by reduced demand from the fertilizer sector, economic uncertainties, and increased competition from alternative products. Moreover, there was an oversupply of Phosphoric Acid in the market as major importers maintained high inventory levels. Geopolitical challenges, such as attacks on commercial vessels in the Red Sea, resulted in significant delivery delays, affecting shipments to Europe. Additionally, an increase in freight charges contributed to the overall price hike. Fortunately, there were no reported plant shutdowns during this quarter. Germany, a prominent market player, experienced a decrease in prices due to the decline in prices from the major exporter, Morocco. While the Eurozone saw a slight recovery in the services sector, Germany's export sector experienced slower growth, causing the country to lag behind. The price of Phosphoric Acid in Germany during this period was USD 1130 per metric ton of Phosphoric Acid Industrial Grade FD Hamburg. More than one shutdown was reported during this quarter, and disruptions, including delivery delays and increased freight charges, were observed.
MEA
The first quarter of 2024 presented new challenges for the Phosphoric Acid market in the MEA region. Various factors influenced the market dynamics and prices during this period. Unfavourable weather conditions, such as lower rainfall and reduced crop sowing in the northeast, had a negative impact on the agriculture sector. Consequently, the demand for fertilizers decreased, leading to a decline in the price of Phosphoric Acid. Additionally, the ongoing shipping risks in the Red Sea prompted Morocco's phosphate producer, OCP, to rely more on European suppliers for Sulphuric acid. This shift in sourcing disrupted the spot demand for Asian-origin acid cargoes, further influencing the pricing dynamics of Phosphoric Acid. Moreover, consumer confidence in Morocco remained low in Q1 2024, indicating challenging economic conditions domestically. In Morocco specifically, the price of Phosphoric Acid experienced a significant decrease during this period. The stability in the price of Phosphate Rocks played a role in keeping production costs low. Furthermore, the fertilizer industry faced obstacles due to below-normal monsoons and reduced crop sowing, resulting in decreased demand for Phosphoric Acid. The heightened shipping risks in the Red Sea also affected the market, as OCP relied more on European suppliers for Sulphuric acid. These combined factors contributed to a bearish market sentiment and a decline in the price of Phosphoric Acid in Morocco during Q1 2024. The current price of Phosphoric Acid FOB Casablanca in Morocco for this quarter stands at USD 930 per metric ton.
For the Quarter Ending December 2023
North America
In the U.S. market, the price of Phosphoric Acid has experienced a downward trend during the fourth quarter of 2023, primarily attributed to a reduction in the cost of Phosphate rocks sourced by the nation.
The U.S. Commerce Department has initiated an investigation to assess whether producers of phosphate fertilizers in Morocco and Russia are benefiting from unfair subsidies. This investigation was prompted by a petition submitted by Mosaic Co, a U.S.-based competitor in the fertilizer industry. The implicated groups have expressed their intent to challenge the petition, maintaining that their fertilizers do not receive any form of state subsidy.
The diminished demand for phosphoric acid in the U.S. market is a consequence of reduced demands for fertilizers in the downstream market. Industries such as food, preservatives, and surfactants have also reported subdued demands. Additionally, industrial players are hesitant to expand production due to pricing pressures and higher production costs. In this quarter, the price of Phosphoric Acid concluded at 1055 USD/MT FOB-Texas, indicating a decline of 0.47%.
APAC
In the Asia-Pacific (APAC) region, the price of Phosphoric Acid has exhibited a declining trend during the 4th Quarter of 2023, primarily attributed to the decrease in the price of Phosphate rocks from the sourcing nation. This decline is notably observed in major producers such as Morocco, from where countries like India primarily import Phosphoric Acid. In China, concerns about the reliability of the world’s top exporter have led fertilizer buyers in Asia to actively seek alternatives, especially after restrictions on shipments were imposed to protect the domestic market. In the downstream market, both DAP and MAP sales in China have slowed down in recent months, accompanied by a reduction in domestic production. Despite this, suppliers have actively participated in continuous destocking of inventories, resulting in a lack of fresh bidders for new orders of Phosphoric Acid. In this quarter, suppliers have reduced their ex quotation price, leading to a decline in the price of Phosphoric Acid, concluding at 986 USD/MT FOB-Qinzhou, marking a decrease of 3.23%.
Europe
In the European market, Phosphoric Acid prices experienced a slight increase at the end of 4th Quarter 2024, primarily due to heightened demand from the downstream fertilizer sector, specifically for the production of DAP and MAP. Simultaneously, the Food and Beverage sectors saw a significant uptick in demand, contributing to the price upturn in this specific session. The European region’s heavy reliance on imports exposes it to fluctuations in import costs, which play a crucial role in influencing the pricing dynamics of Phosphoric Acid. Additionally, a surge in freight charges observed this month emerged as a principal factor in the overall price surge. Geopolitical conflicts are putting pressure on the supply of Phosphoric Acid in the European Union, leading to disruptions in the regional supply chain. Major industries in the respective region have halted or slowed down the rate of production as sanctions imposed on Russia by European Union have made a bigger impact on their Phosphate and other utilities sourcing like Natural gas. As of the current quarter, the price of Phosphoric Acid concluded at 1280 USD/MT FD-Hamburg, reflecting a modest increase of 0.39%.
For the Quarter Ending September 2023
North America
During the third quarter of 2023, the market price of Phosphoric acid was recorded to be increasing. US Phosphoric Acid markets gained a stance in the wake of rising Ex-quotation prices and tepid downstream market enterprises. Some firmer price gains from the domestic market and rising spot trading activities gave support to the price trend. Amid the surging production cost, local producers have increased Phosphoric acid prices for domestic and overseas markets to USD 1095 (FOB-Texas) in September 2023. In terms of inventory level, stocks are limited, and continuous product utilization and healthy demand for fresh stocks supported the price trend. The downstream Agrochemical and fertilizer industries have surged with trading activities in bulk. There was high participant interest, which gave a boost to the price trend of the commodity. The futures of Phosphoric Acid were higher with accelerating bidding for the new stocks. Local producers have also felt pressured to fulfill the end-user industry's demand and surged the price trend for the domestic and overseas markets.
APAC
In the Asian market, the price trend of Phosphoric Acid showcased an upward price trajectory in the third quarter of 2023. This uptick in price has led to a corresponding decrease in inventory levels as a result of heightened consumption from the downstream fertilizer market, with USD 1001/MT (FOB-Qinzhou) in September 2023. Market observers note that the overall value of Phosphoric Acid has increased due to a combination of factors, including growing demand and production challenges. As such, buyers reportedly prioritized domestic supplies over imports from other regions like the Middle East, leading some shipments to head eastward toward potential customers in countries such as Australia and Myanmar. During September 2023, Phosphoric Acid inventories remained low in terms of supply, and higher product bidding in the region hampered the market dynamics. China diverted its Phosphoric Acid cargoes toward the Southeast Asian ports due to healthy demand market participants becoming more interested in trade with overseas suppliers. Traders began showing interest in bulk purchases coupled with differentiated product portfolios, which support business growth and profitability.
Europe
In the European market, the price of Phosphoric Acid was monitored to increase in Q3 of 2023. With limited product availability and strong market trading dynamics, the price of Phosphoric Acid in Germany increased. Imports in the region surged with a revision in the price trend for overseas suppliers to USD 1329/MT (FD-Hamburg) in September 2023. Local producers surged their production rate due to elevated demand for Phosphoric Acid and healthy trading fundamentals. Imports of Phosphoric Acid traded from Germany to other European markets surged with higher trading fundamentals discussions among the suppliers. With the increased feedstock Phosphate market, the market trading fundamentals surged, resulting in an elevation in price trend. Germany had stockpiles in their storage facilities, which restricted the trades, but increasing domestic market fundamentals contributed to price incline. Suppliers were purchasing the stocks in bulk and were expecting the prices to elevate further. In the European market, the demand for Phosphoric Acid elevated with the increasing production rate among the significant manufacturing units.
MEA
During the third quarter ending on September 2023, the prices of Phosphoric Acid surged with strong market fundamentals. Spot prices of Phosphoric Acid surged in Morocco with the oscillation in feedstock Phosphorus prices. Phosphoric Acid prices started on a higher note of USD 1190/MT (FOB-Casablanca) in September 2023, with producers surging their production rates in response to higher cost support from the upstream market. Bullish demand across domestic and export end markets kept buying enthusiasm high along with supply limitations. The phosphoric Acid market rebounded with the demand recovery and ended up on higher market fundamentals. Exports of Phosphoric Acid from Morocco to the overseas market surged in the wake of an increase in cost support from the upstream crude oil prices. The surging demand for Phosphoric Acid in Morocco from the downstream Agrochemical market surged the trading fundamentals. Inadequate product availability and strong market sentiments remain critical for a healthy trading environment. In the regional market, Phosphoric Acid demand remains surged with high bidding applications, surging the profit and revenue among the industrialists.
For the Quarter Ending June 2023
North America
Due to poor demand for phosphate rock, the availability of diammonium phosphate (DAP) has become limited, particularly from Chinese and Moroccan sources. As a result, various phosphoric acid contracts have been negotiated with Indian buyers at lower prices. The outlook for the phosphoric acid market appears gloomy in the United States, as falling prices have persisted in Southeast Asia and the US due to weak demand for the product. Prices have stabilized after several weeks of decline, although they remain relatively flat. The purchase manager's index (PMI) for the US dropped sharply by 46.3, while the consumer price index increased slightly by 0.1%. These factors had only a minor effect on the cost of phosphoric acid in the region. Freight charges also fell by 3%, pulling down prices for phosphoric acid between the North American east coast and Europe during the second quarter of 2023, according to market team data. Consequently, inventories of phosphoric acid rose due to higher consumption of the product at USD 1100/ton, 85% FOB Texas.
Asia
Recent economic indices reported negative fluctuations in South Korea's Manufacturing Purchasing Manager Index (PMI), falling below the 50-point benchmark indicating contraction in industrial activity paired with the Consumer Price Index (CPI) hitting a historically low record of 111.12 points, reflecting deflationary pressures hampering market optimism. While freight charges connected with movements from East Asia/China to the Mediterranean basin demonstrated a slight price reduction of around 2%, insignificant influence is expected on specific product pricing. Last week, the global Fertilizers & Agrochemicals industry registered marginal increases reaching nearly 2% compared to previous weeks, mainly owing to improved fortunes experienced by major players like KG Chemical, whose share value surged approximately 14% during this identical duration amidst a continued rise seen across the whole domain within these seven days ending today. As a result, industry returns witnessed solid expansion, recording a positive alteration of around 6.6% on a YTD basis when contrasted against respective annual return figures garnered over the past twelve months, thereby exhibiting healthy signs of resilience for future investments and outlook. Meanwhile, other notable firms, such as Namhae Chemical, witnessed a decline posting losses amounting to roughly 6.3% at USD 1277/ton CFR Busan in South Korea.
Europe
Two main factors impacting the Phosphoric Acid-based fertilizer manufacturing process in Germany stem from varying crude oil quality issues and changes in raw materials sourcing dynamics. Specifically, fluctuating energy and labor costs associated with processing variable feedstock mixes ultimately influence final product pricing levels and overall gross margin throughout regular facility operations. Overage situations tend to arise during periodic maintenance cycles, leading to unnecessary excess accumulations at designated storage depots that must eventually be addressed through the redistribution of the oversupplied material or the implementation of waste reduction measures to balance product yield rates. Sustaining adequate minimum stock standards ensures stable production outputs under typical circumstances while managing resources efficiently based on specific market demands. Weakening demand and fluctuating freight rates combine to make long-term contract negotiations difficult in the German market. Fading supply chain problems in the German market are easing the downturn in the region's manufacturing sector in the second quarter of 2023, as per market team data at USD 1317/ton Industrial Grade FD Hamburg.
MEA
A drop in the price of Phosphorus Yellow, a critical input commodity, contributed partially to the slight upswing observed in the Phosphoric Acid market. Manufacturers possessed plentiful on-hand supplies due to unaddressed inventory accumulation from previous procurement exercises. This resulted in their preference to settle for lesser returns and accept offers for sale during this period, characterized by a modest market activity where buyers focused mainly on fulfilling immediate obligations rather than competitive bidding opportunities available within North African markets, including Morocco. The absence of urgent buying requirements kept traders away from engaging in aggressive quote requests among local suppliers, waiting instead for potential future discount possibilities before initiating serious trade discussions. The market demand from the downstream fertilizers market was depleted, and the inventory rate was elevated in the Moroccan market. The utilization of Phosphate based fertilizers plunged, and the stock of feed Sulphur increased, impacting the market sentiments during the second quarter of 2023 at USD 1205/ton FOB Casablanca.
For the Quarter Ending March 2023
North America
In the North American region, Phosphoric Acid experienced a declining price trend during the first quarter of 2023, with prices falling from USD 1270/MT in January to USD 1168/MT in March. The plummeted trend was maintained this quarter because of dampened market dynamics accompanied by low demand from local as well as overseas markets. Also, downstream industries, majorly fertilizers, opted for a wait-and-see approach toward the price trend, resulting in weak purchasing activity. According to market participants, the operating rates remained weak in the US domestic market. The deterioration in operating conditions stemmed largely from further contractions in output and new orders. However, sticky inflation pressurized the US Federal Reserve to increase the interest rates, which impacted consumer confidence, and traders made offtakes at lower margins amid sufficient availability.
Asia- Pacific
Phosphoric Acid prices in the Asia-Pacific region exhibited a mixed trend during the first quarter of 2023. The Phosphoric Acid market witnessed a positive start to the quarter due to a rise in raw material yellow phosphorus prices. According to market participants, the resurgence in market activities was observed after the government abandoned its zero-COVID policy. There were few new orders with a rebound in demand from downstream fertilizers, food, and other industries ahead of the Lunar New Year holiday. After that, the price trend of Phosphoric Acid plummeted along with bearish market sentiments, with prices declining from USD 1465/MT on February 3 to USD 1320/MT on March 31. Dwindling production costs among Phosphoric Acid manufacturing units were there on the back of a decline in feedstock Yellow phosphorous prices. In terms of supply, inventories were sufficient in the domestic market after the improvement in manufacturing activities in China. However, purchasing enthusiasm remained muted because of low demand from domestic and overseas markets. Consequently, some distributors were forced to trim their prices as market activity was not up to expectations.
Europe
The Phosphoric Acid market in Europe experienced a bearish sentiment in the first quarter of 2023. The decrease in Phosphoric Acid prices in Germany during this quarter was due to adequate product availability and declining demand in the domestic and international markets. According to market players, operating rates slowly declined in this quarter due to low consumption and no new orders of Phosphoric Acid, but material availability in the local market was not affected and remained sufficient among domestic suppliers as imports from the overseas market have remained steady with no supply chain disruption. The market transactions were light and downstream support from fertilizers, food, and other industries was insufficient as purchasers lacked confidence, due to which the suppliers lowered the quotations to stimulate buying performance. Therefore, the price of Phosphoric Acid settled at USD 1362/MT FD Hamburg on March 31.
For the Quarter Ending December 2022
North America
The prices of Phosphoric Acid shifted in a downward parabolic shape during the fourth quarter of 2022 in the North American market, with costs ranging at the peak during the middle of the quarter at USD 1348/ton, 85% FOB Texas (USA) in November. The logistics in the USA market improved, although the rise in the supply of the product affected the market sentiments. Decreased demand for Phosphoric Acid in the food, beverage, and pharmaceutical industries has pulled down the global Phosphoric Acid market growth. The supply remained sufficient to meet the country's available consumption, while demand from the fertilizer and mining industries remained weak.
Asia
In the Q4 of 2022, the prices of Phosphoric Acid weakened in the Asian market, with costs ranging from USD 1635/ton to 85% FOB Qinzhou in October. The yellow phosphorus raw material price was lowered, and the cost pressure was slightly eased. Starting loads of phosphoric acid enterprises gradually increased, and flexible pricing spaces increased, so the price was lowered. There was more room for price cuts for phosphoric acid companies because downstream demand has remained stable to sluggish. There was a weak downstream demand for Phosphoric Acid this quarter, a soft trading atmosphere in the market, and a wait-and-see mentality in the Phosphoric Acid, and the downstream was largely witnessed during the last quarter of 2022.
Europe
During the fourth quarter of 2022, the market value of Phosphoric Acid remained plummeted, with costs ranging at USD 2610/ton Industrial Grade FD Hamburg in December as per ChemAnalyst Research Team Data. Phosphoric Acid prices in the German market have decreased with the depletion of production costs, as noted by traders. Stockpiling of inventories occurred because of high imports on the regional market. Market sentiments were affected by a decrease in Phosphoric Acid demand in the downstream fertilizer and detergent industries. There were sharp negative adjustments in the import prices of Phosphoric Acid in the local market as Germany imports Phosphoric Acid from other European countries.
For The Quarter Ending September 2022
North America
The third quarter of 2022 saw an escalation of Phosphoric Acid prices in the US market, with prices ranging at USD 1295/ton Phosphoric Acid 85% FOB Texas during September. The demand for essential consuming fertilizers remained low in July. Meanwhile, the exporting demand from the European countries was high during the summer, although trading activity remained halted amidst the penultimate quarter in the USA. Phosphoric acid consumption increased in the soaps and detergents industry by the end of the quarter. Rising inflationary pressure due to the global pandemic and the ongoing war between Russia and Ukraine also increased prices in the regional US market
Asia-pacific
Phosphoric Acid prices were see-sawed in the Asian market during the third quarter of 2022, with prices hovering at USD 1716/ton Phosphoric Acid 85% FOB Qinzhou. The cost from upstream Phosphate rock was strengthened and supported the product's cost during the beginning of the quarter. The low supply and increased downstream demand derivatives resulted in a rise in the price movement in the regional Chinese market by the end of August. In September, there were few changes in the market situation, resulting in a stable product price and further easing the market sentiments bringing limited change in the trend of Phosphoric Acid and its other downstream uses.
Europe
During Q3 2022, Phosphoric Acid prices were seen to rise on the stable front in the European market. In August, the domestic market of Phosphoric Acid in Germany witnessed an increasing trend. Demand from the downstream fertilizers market increased the price of the product. The supply chain situation was poor in the region, with lower product availability due to shortages of shipments, as observed in the market during the end of the quarter. However, the inventories were decreasing with the traders and the suppliers, thus causing lower stockpiling of products. The raw material Phosphate rock and Sulphuric Acid prices were soaring in the Netherlands market.
For the Quarter Ending June 2022
North Americ
In the second quarter of 2022, the Phosphoric Acid has observed gyration throughout the region. Demand from the Phosphate fertilizer industries increased the price of Phosphoric Acid and food prices in the region. The fertilizer supply chain was disrupted, especially in China, due to COVID lockdown as a major fertilizer producer; the region had substantial fertilizer shortages. Western countries-imposed sanctions on Russia due to its invasion of Ukraine, which affected the phosphate-based fertilizer procured from the overseas market. The rising population and limited arable land have resulted in a greater reliance on fertilizers to meet the growing demand in the United States.
Asia-Pacific
The Asia Pacific market showed an up and down in Phosphoric Acid prices throughout the second quarter of 2022. Growing demand from downstream pharma, agriculture, food, and beverages drives the regional phosphate market. China has suspended exporting fertilizers until June 2022 to ensure the domestic availability of the product. Indian authorities have signed an agreement with Jordan Phosphate Mining company (JPMC) to supply 1 Lakh Metric Tonne of Phosphoric Acid to the Indian Public and Private companies from now and over the next five years to curb the demand for the upcoming Kharif season. India has finalized the critical supply of fertilizers from Russia under a barter system agreement avoiding dollar transactions due to US sanctions. The percentage of Food grade Phosphoric Acid was recorded at an inclination of 3% on an Ex-Mumbai basis during the second quarter.
Europe
In the second quarter of 2022, the market sentiments for Phosphoric Acid were volatile in the European market due to the problems occurring in the eastern Europe region. The war-related situations disrupted the supply chains and soared the product prices in the market. Demand in the raw material supply affected the downstream industries like fertilizers. Russia and China's largest fertilizer exporter has already suspended fertilizer export. Europe's natural gas prices had increased, seeing the price hike in fertilizer sectors in the entire region. The Russian authorities' firm stance on trading the Ruble (Russian currency) has put pressure on supply disruptions to stabilize demand in the local market.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, the Phosphoric Acid market in the North American region witnessed several gyrations amidst the persistent hindrances in the global commodity cycle. According to the UN FAO, the food pricing index peaked in December 2021, and since then the situation further worsened as the food prices constantly witnessed the impact of inflation on the global front. The demand from the European market soared drastically after the Chinese and Russian supplies for Phosphate based fertilizers were difficult to procure after the authorities imposed restrictions on exports to the overseas market or increased the tariffs. As a ripple effect, the prices of Phosphoric Acid in the US market remained buoyed throughout the first quarter and the discussions were settled at USD 2238 per tonne in March of 2022.
Asia Pacific
In the first quarter of 2022, the Asia Pacific market observed persistent fluctuations in the offers of Phosphoric Acid. The restriction imposed by the Chinese authorities on Phosphate based fertilizers and makeshift in the market dynamics of Phosphoric Acid, as an important commodity in the EV sector. Collectively pressurized the supplies of Phosphoric Acid in the domestic market and the cost support from the upstream persistently remained high. Although, some relief was witnessed as the speculation regarding the exports of phosphate-based fertilizers resumes in the mid-of first quarter of 2022 uplifted the sentiments at the spot market. Whereas, agricultural-based economies such as India, started working to safeguard their interests way earlier, besides subsidizing the raw materials of fertilizers in the domestic market. Although, the FOB-Qinzhou discussions for Phosphoric Acid 85% were settled at USD 1995 per tonne, in March 2022.
Europe
In the first quarter of 2022, the market dynamics were not favorable for the European market as their initiatives on renewable energy sources were majorly the root cause of the problem for the region. Since the last year, the European market is observing the pressurized supplies of natural gas against the falling temperature. Whereas, recently the conflict that broke out between Russia and Europe has further suppressed the market dynamics amidst the sanctions on Russia and the export quota induced by the Russian authorities on the exports of fertilizers has worsened the situation in the European market. In response, the market sentiments for Phosphoric Acid were remained buoyed throughout the quarter and discussions for CFR Hamburg were settled at USD 2479 per tonne.
For the Quarter Ending December 2021
North America
In the fourth quarter of 2021, the Phosphoric Acid market in the North American region remained consolidated and the producers offers constantly fluctuated throughout the quarter. The major reason for such market movement is majorly attributed to the minimal dependency on Chinese suppliers for the Fertilizers export and the adequate domestic production. This paradigm shift in the Phosphoric Acid market trend from the fertilizers sector to the EV sector has supported the demand outlook in the North American region. In repercussion, the FOB USA quarterly average was assessed at USD 1650 per tonne, during the quarter ending.
Asia Pacific
The Phosphoric Acid market in the Asia Pacific witnessed enormous growth in the fourth quarter after the Chinese authorities restrict the exports of Phosphate based fertilizers and their raw materials till the second quarter of 2022. This concerned the China-dependent states like India on the downstream DAP to ensure the supply of Phosphoric Acid from the other suppliers. Whereas the shift in the market dynamics of Phosphoric Acid towards the EV’s segment supported the offered quotations to witness multifold gains in the fourth quarter. Therefore, the Ex-Mumbai (India) discussion for Phosphoric Acid Food Grade was settled at USD 1746 per tonne, in December 2021.
Middle East
As the Chinese authorities restricted the exports of DAP and its key raw material till the second quarter of 2022, the demand outlook for Phosphoric Acid skyrocketed in the fourth quarter of 2021. The inquiries from the Indian downstream buyers have poured to ensure the supply of Phosphoric Acid in the fourth quarter Morocco exported 100915.2 MT of Phosphoric Acid worth trade value of USD 100 Million. Therefore, due to the exceptional support from the demand outlook, it further strengthened the will of Phosphoric producers in Morocco to hike the offers for Phosphoric Acid fertilizer grade by USD 170 per tonne, to FOB Nador (Morocco) discussion for Phosphoric Acid settled at USD 1210 per tonne by the quarter ending.
For the Quarter Ending September 2021
North America
The prices of Phosphoric Acid rose effectively in the 3rd quarter of 2021 in the North American region on the back of the consistent demand for agricultural products. The pricing trend for phosphate-based fertilizers demonstrated an upward trajectory across the region due to increment in the prices of Phosphoric Acid. Phosphoric Acid prices almost doubled from the year ago period, translating marked gains in the region’s phosphate fertilizer pricing and adding to the worries of several corn farmers in the U.S.
Asia
The market outlook of Phosphoric Acid observed a significant rise in the Asia Pacific region in Q3 2021. The prices of Phosphoric Acid rose effectively in the Chinese domestic market due to a strong rise in global demand. In India, the demand for Phosphoric Acid remained high in August, backed by firm offtakes from the domestic DAP (Diammonium Phosphate) manufacturers, while the availability remained insufficient to cater to the overall demand. Global scarcity of Phosphoric Acid surged the overall price of several phosphate fertilizers in India, where the government was trying to regulate the downstream fertilizers prices to reduce the burden from domestic farmers. Phosphoric Acid (Fertilizer Grade 51.75%) CFR Kandla (India) prices escalated from USD 972/MT to USD 1220/MT in the third quarter of 2021.
Europe
The domestic market observed an increment in the prices for phosphate-based fertilizers in the European region in the third quarter of 2021 which further led to the increased price of Phosphoric acid across the region. Hiked prices of agricultural products and their consistent demand in the US and European markets propelled the global demand for the material in Q3. The region’s phosphate fertilizers production continued to stay under the pressure of extreme weather conditions, plant shutdowns, sanctions, and rising energy costs in Europe and China, pushing prices to record levels in Q3.
For the Quarter Ending June 2021
North America
Phosphoric Acid prices rallied upwards across North America region, backed by firm demand from the domestic and global market. Demand for Phosphoric Acid from the downstream fertilizers manufactures remained high throughout the quarter, as the domestic farming sector picked up the pace during the month of May and June. In addition, strong DAP demand from European and Asian countries pushed up the global Phosphoric Acid demand that supported the upward trajectory of its pricing curve. The price of Phosphoric Acid reached its peak during the first week of June and hovered around USD 690/MT in USA.
Asia
During this quarter, price of several fertilizers rose sharply, due to unprecedented rise in feedstock chemicals including Phosphoric Acid, which is key feedstock for DAP. Effective rise in demand from the downstream DAP manufacturers increased the prices of Phosphoric Acid in the APAC region. While in China, prices also gained effectively due to strong rise in global demand. Frequent rise in price of feedstock chemicals, led to an extreme rise in downstream products that forced the Indian government to intervene and take measures to provide some relief to DAP consumers in India. The price of Phosphoric acid was assessed as USD 863/MT for 75% technical grade during the month of June.
Europe
The price of Phosphoric Acid climbed up in this quarter in major European countries, backed by sturdy demand from the downstream fertilizer segment. The agrochemicals sector of Europe showcased a rebound after witnessing critical weather conditions during the previous quarter. This rise in demand from the fertilizer manufacturers initiated an overall buoyancy in the price of Phosphoric Acid. In addition, due to global price hike, cargoes coming to Europe from Asia were also quoted expensive, where higher freight cost exacerbated the over price scenario.
For the Quarter Ending March 2021
North America
Freezing weather halted the production activity across the US gulf during Q1 2021, hence the prices of Phosphoric Acid increased significantly. The demand from the key consuming fertiliser sector remained low during the period, due to freezing weather conditions and limited cropping. Meanwhile the export demand from the European countries was high amidst spring season, although the trading activity remained largely halted during this period. The prices of Phosphoric Acid rose in the US rose from USD 615/MT (January 2021) to USD 645/MT (March 2021).
Asia
The performance of the Asian fertiliser industry remained dull during this period, hence the domestic demand for Phosphoric Acid remained low in the region. Although rising demand from the European countries maintained the buying momentum in the region. Several manufacturers were opting to export, rather than keeping it for the domestic market so as to secure better margins. Suez Canal blockage also impacted the trading activity across the region. Several Phosphoric Acid consignments were delayed during this period. In addition, from January to March, Phosphoric Acid prices rose by 4.8% in the Indian market despite showing a marginal movement in China.
Europe
Europe had a fair demand from the domestic fertiliser sector due to spring season, although the domestic supply remained insufficient to satisfy the total domestic demand. Hence the import demand across the region remained high that caused the prices to rise effectively. Meanwhile, extreme cold snap across the US market reduced the availability of Phosphoric Acid across the region and hence the traders diverted their dependency from the US to the Asian countries.
For the Quarter Ending December 2020
North America
The demand of Phosphoric Acid increased due to favorable crop output in the US. With various government initiatives to support the pressured economy, the demand of Phosphoric Acid remained well above producer’s expectations. In Q4 of 2020, the North American Phosphoric Acid sales remained stable with prices for the product maintained at higher levels to shed the previously incurred losses. Traded volumes were stable as fertilizer market were affected by lower phosphoric acid exports amid port related congestions heard towards the end of the quarter.
Asia
The demand for phosphoric acid in the Asian market from various countries like China and India remained stable in Q4 due to its applications in the production of phosphate fertilizers. A leading player reported ramped up operating rates at its White Phosphoric Acid plant in China and is likely to commence production at its commercial food-grade acid by the end of Q1 2021. Pent-up demand from the textile and sugar industries mills kept the regional offers in a suitable range. The stability in prices of phosphorous assured stable price of Phosphoric Acid. Indian players reported increased Phosphoric acid usage in several industrial applications in Q4 of 2020 where the domestic prices stood around 713 USD/MT.
Europe
Market outlook of phosphoric acid in Europe remained somewhat steady. The offered prices of Phosphoric Acid were increased as players reported strong demand in the European region with consumers actively restocking to make purchases for the spring season. Its major consumption in the production of phosphate fertilizers increased the demand in the Q4 of 2020 as the fertilizer industry was least affected by the pandemic. White phosphoric acid (WPA) imports were reported high with a considerable improvement in food grade phosphates and stable industrial salts maintain the offers high.
