For the Quarter Ending December 2024
North America
In the past quarter, the U.S. phosphoric acid market witnessed a slight decline of 0.74% compared to the previous period, largely due to stable supply and demand dynamics. Phosphoric acid supply remained steady with consistent production levels, supported by adequate raw material availability, including phosphate rocks.
Manufacturers, while facing flat demand across various sectors, adjusted their output to maintain market balance, preventing any significant fluctuations in pricing. Despite challenges such as labor shortages and transportation delays impacting delivery times, the market experienced smooth operations in port facilities, ensuring efficient supply chain management.
On the demand side, agricultural sectors, particularly fertilizer production, sustained stable demand, driven by the ongoing crop fertilization mid-season. However, overseas demand showed signs of weakening due to lower agricultural outputs in major export markets like Mexico and Brazil, which may dampen global demand. The continued challenges in global phosphate supply, including Chinese export restrictions and U.S. production disruptions, contributed to a tight market, but the overall market balance was maintained. Manufacturers, cautious about inventory management, adjusted production levels in response to reduced purchasing activity and market uncertainty.
APAC
Over the past quarter, the phosphoric acid market in China has shown a notable 5.58% increase, driven by a series of strategic supply and demand factors. The market dynamics were primarily influenced by a balanced supply chain and cautious downstream buying behavior, despite some fluctuations in feedstock prices and manufacturing activities. The recovery in the phosphate fertilizer sector, particularly in the production of monoammonium phosphate (MAP) and diammonium phosphate (DAP), helped stabilize the market. Increased demand from the new energy sector, driven by the rise in new energy vehicle production, further supported the overall consumption of phosphoric acid. Manufacturers focused on maintaining stable production levels and ensuring adequate supply, even as export activities remained somewhat restrained. The tightening of phosphate exports by China in an effort to secure domestic supply added to the upward pressure, reflecting a measured approach to market stability. Additionally, despite some resistance from downstream buyers due to high costs, the sustained demand from key industries such as fertilizers and new energy helped maintain market resilience.
Europe
In the European Phosphoric Acid market, the fourth quarter of 2024 witnessed a slight decline of 4.04% from the previous quarter, attributed to a combination of factors impacting supply and demand dynamics. Manufacturing activity remained stable, with consistent production and steady imports from key exporters, such as Morocco. However, the market saw a reduction in inventory levels as a result of cautious purchasing behavior, with buyers opting for more moderate procurement strategies. This restrained approach was driven by weak demand, particularly from the fertilizer sector, where lower consumption of DAP and MAP fertilizers led to procurement challenges. In addition, the broader economic climate in Europe, marked by a drop in consumer confidence and subdued industrial activity, contributed to the tempered demand for Phosphoric Acid. While supply levels remained adequate, inventory reductions were noted across both pre-production and production stages. Despite this, the overall market exhibited a balanced supply-demand ratio, with suppliers managing disruptions effectively and improving delivery times. The decline in demand, coupled with cautious market sentiment, especially from the agriculture and industrial sectors, was the primary factor influencing the downward trend.
MEA
In the fourth quarter of 2024, Phosphoric Acid prices in Morocco experienced a 4.57% decrease from the previous quarter, primarily driven by several factors affecting the market dynamics. Despite stable supply levels, with consistent production and export activities from key manufacturers like OCP Morocco, the demand for Phosphoric Acid showed signs of moderation. Global demand for Di-Ammonium Phosphate (DAP) and Mono-Ammonium Phosphate (MAP) remained flat, particularly in key overseas markets such as India, which dampened overall consumption. While the agriculture and food processing sectors in Morocco showed stability, reduced export activity, especially in DAP, contributed to lower demand. Manufacturing conditions remained steady, with suppliers maintaining efficient operations and managing production volumes to align with current demand. The significant export volumes from Morocco, including key shipments to Pakistan, Belgium, and other regions, helped sustain supply, but global supply chain constraints and limited high-end consumption in the last quarter of 2024 reduced upward price pressures. Furthermore, mixed feedstock dynamics, with Sulphuric Acid prices on the rise and phosphate rock prices remaining stable, added to the overall cost pressures in the production process. While the sector remained generally positive, the ongoing global supply limitations and shifts in regional demand patterns played a crucial role in the witnessed market prices during this period.
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.
