For the Quarter Ending September 2024
North America
The third quarter of 2024 witnessed a notable increase in Phosphorus Acid prices in the North American region, with the USA experiencing the most significant price changes. This upsurge can be attributed to various factors, including heightened demand from downstream sectors, logistical challenges, and increased production costs due to rising feedstock prices.
Despite a seasonal decline in demand from the agrochemical sector, the overall market trend remained bullish. Plant shutdowns and disruptions, such as those caused by the hurricane season, further impacted supply chains and contributed to the price hike. In the USA specifically, the market displayed a positive correlation between price changes and demand dynamics, with prices steadily rising throughout the quarter.
The quarter-ending price of USD 1960/MT for Phosphorus Acid 99% CFR Texas in the USA marked a 5% increase from the first half of the quarter, reflecting the overall increasing pricing environment in the region.
APAC
In Q3 2024, the APAC region witnessed a surge in Phosphorus Acid prices driven by robust demand and supply dynamics. The market experienced significant price fluctuations influenced by various factors such as supply chain disruptions, increased seasonal demand, and fluctuating raw material costs. The overall trend in the region indicated a positive correlation between demand from key industries and price increments. In China, the market saw the most pronounced price changes, reflecting a bearish sentiment due to moderate to low demand levels. Seasonal patterns played a crucial role in price movements, with the quarter recording a 9% price increase between the first and second half. Despite a -4% change from the previous quarter in 2024, the year-on-year comparison highlighted a notable positive shift. Plant shutdowns, such as [add names if available], added to the market dynamics, contributing to the overall price trends. As the quarter concluded, the price for Phosphorus Acid stood at USD 1700/MT FOB Shanghai, signaling a consistently increasing pricing environment in the region.
Europe
Throughout Q3 2024, the European region experienced a period of escalating prices for Phosphorus Acid, with Germany being at the forefront of significant price changes. Various factors contributed to this upward trend, including stable feedstock prices, increased demand from downstream industries, and a bullish market sentiment. The market saw moderate to low demand, with a focus on the agricultural sector and other industries driving the price surge. Additionally, the bearish market situation and moderate supply levels further fueled the price increments. Plant shutdowns in certain regions also caused disruptions, impacting supply chains and prices. In Germany specifically, the pricing environment remained positive, with prices increasing steadily throughout the quarter. The overall trend reflected stability, with a slight decline recorded from the previous quarter. The correlation between price changes in the first and second half of the quarter indicated a slight rise. As Q3 came to a close, the price of Phosphorus Acid 99% CFR Hamburg in Germany stood at USD 1860/MT, marking a notable increase from the beginning of the quarter.
For the Quarter Ending June 2024
North America
The North American Phosphorus Acid market experienced a downward trend in Q2 2024, influenced by several critical factors. The reduced prices stemmed predominantly from lower-priced imports, particularly from Asian markets, creating an oversupply situation. The fertilizer sector's subdued performance and weakened demand from the textile industry due to falling exports significantly impacted pricing. Furthermore, a decline in demand from the water treatment sector and fluctuations in the food and preservative market exacerbated the price reductions. The overall economic landscape, while showing some signs of recovery, did not counterbalance these adverse factors.
In the USA, where the most pronounced price changes were observed, the market demonstrated a consistent decrease throughout the quarter. The oversupply, driven by high inventory levels, led to muted bidding behavior and lower prices. Seasonality further influenced this trend, as Q2 typically sees lower activity in agricultural sectors, which are major consumers of phosphorus acid. From the previous quarter in 2024, there was a 0.5% decline, indicative of a sustained negative pricing environment.
Moreover, ongoing logistical challenges, particularly at the Port of Baltimore, created additional supply chain disruptions, further skewing the supply-demand balance. By the end of Q2, the price of phosphorus acid 99% CFR Texas in the USA settled at USD 1830/MT, reflecting a negative pricing sentiment throughout the quarter.
APAC
In Q2 2024, the pricing environment for Phosphorus Acid in the APAC region has been predominantly negative, characterized by a consistent downward trend. Various factors have significantly influenced market prices. Primarily, a downturn in both upstream and downstream markets has exerted pressure on prices, despite reductions in raw material costs, such as phosphorus trichloride. Additionally, economic uncertainties and fluctuating market conditions have caused a cautious approach among buyers, particularly in the small and medium-sized enterprises (SMEs) sector. Supply chain disruptions exacerbated by economic and geopolitical factors have compounded these challenges, leading to an oversupply in the market. Focusing on China, the country witnessed the most significant price changes. The overall trend has been bearish, reflecting subdued demand from primary sectors such as textiles and agrochemicals. The quarter concluded with the price of Phosphorus Acid 99% FOB Shanghai at USD 1550/MT, reflecting a significant decline from the previous quarter, recorded at -0.6%. Notably, there were no major plant shutdowns or disruptions reported during this period, indicating that the price decline was primarily demand-driven rather than supply-constrained.
Europe
In Q2 2024, the pricing environment for Phosphorus Acid in Europe has been predominantly positive, characterized by significant price reductions. Specifically, in Germany, the market has experienced the most pronounced price changes. The overall trends indicate a consistent decline in prices throughout the quarter, influenced by factors such as subdued demand from key downstream sectors like agrochemicals and fertilizers. Seasonality has also played a role, with unfavorable weather conditions impacting agricultural productivity and, consequently, demand for Phosphorus Acid. The correlation in price changes reflects a broader economic trend of increasing commodity prices in the region. Compared to the previous quarter, prices have decreased by 2.4% in Q2. The quarter concluded with the price of Phosphorus Acid 99% CFR Hamburg in Germany standing at USD 1790/MT. This persistent downward trend underscores a challenging pricing environment, marked by negative market sentiment and a consistent decrease in demand. Importantly, there were no reported disruptions or plant shutdowns during the quarter, further emphasizing the impact of market dynamics on pricing trends.
For the Quarter Ending March 2024
North America
In the USA, despite mixed sectoral performance, the price of Phosphorus Acid has shown a notable uptrend, reaching 1905 USD/MT CFR-Texas, marking a significant 10.11% increment in Q1 2024 from Q4 2023. This price incline could be attributed to several factors.
While the agriculture sector experienced a downturn, increased demand in the water treatment and pharmaceutical sectors likely contributed to the overall uptick in Phosphorus Acid prices. The water treatment sector's upswing indicates a heightened need for Phosphorus-based compounds to address water quality concerns, driving up demand for Phosphorus Acid. Additionally, the pharmaceutical sector's growth suggests increased utilization of Phosphorus Acid in pharmaceutical synthesis, further bolstering demand.
Interestingly, despite a decline in the polymer sector, which may have typically impacted Phosphorus Acid demand, the overall market dynamics seem to have outweighed this effect. Furthermore, the decline in the price of Phosphorus Trichloride, a key feedstock, might have partially offset any potential price pressures, allowing for a more favorable pricing environment.
APAC
In the APAC region, the price of Phosphorus Acid has experienced an upward trend, reaching 1710 USD/MT FOB-Shanghai, marking an 8.22% increment in Q1 2024 from Q4 2023. This price incline comes amidst a mixed scenario across sectors. While the agriculture sector witnessed a downturn, the water treatment sector saw an increase in demand, possibly due to heightened focus on water quality and sanitation. Similarly, the pharma sector reported growth in China but faced challenges in India, potentially due to regulatory or market factors. Additionally, the polymer sector experienced a decline, suggesting reduced demand for Phosphorus Acid in polymer production processes. Despite sectoral variations, the overall uptrend in price can be attributed to factors such as supply constraints, increased demand from the water treatment and pharmaceutical sectors, and possibly production cost escalations. In the Indian market the demand from the downstream Pharma, Water Treatment sector remained up while Agrochemical sector continued to underperform which has cumulatively influenced Phosphorus Acid demand in the respective region.
Europe
In Europe, despite downturns in key sectors like agriculture, water treatment, pharma, and polymer, the phosphorus acid market exhibits an upward price trend. This unexpected increase in price, reaching 1790 USD/MT CFR-Hamburg, represents a significant 5.29% increment in Q1 2024 compared to Q4 2023. In the feedstock market the price of the Phosphorus Trichloride witnessed a notable fall which has not significantly affected the price of the Phosphorus Acid throughout this quarter. However, the most notable driver behind this trend is the low prices observed from major exporters in the Asian market, particularly China from where the European nations import. This surge may reflect a shift in global supply dynamics, where reduced prices from Chinese exporters are stimulating demand in European markets. The underperformance in the economic activities in the European countries has majorly contributed to the decline Despite the downturn in several sectors, the demand for phosphorus acid appears to remain resilient, potentially fueled by ongoing industrial and agricultural activities.
For the Quarter Ending December 2023
North America
In the North American region, the price of Phosphorus Acid has undergone a decline in the fourth quarter of 2023, primarily linked to a reduction in the price of Phosphate rocks from the major exporter. The market for agro-based fertilizers and fungicides downstream has faced constrained demand from end-users.
Major industrial players have grappled with challenges, experiencing reduced sales and margins due to the pricing pressure of phosphate-based fertilizers in the market. The decline in prices is primarily attributed to the decreased prices set by the major exporter, China. Demand for Phosphorus Acid in the US market has decreased, especially in the agrochemical fertilizer sector. Other sectors utilizing its reducing agent properties have also witnessed limited demand. The decrease in prices has prompted suppliers to cautiously engage in extended stock-building activities.
Meanwhile, major industries have closely monitored prices and crop conditions in Brazil and neighbouring markets to identify opportunities for enhancing production. However, the supply of Phosphorus Acid in the downstream market remains at a moderate level, primarily influenced by major industrial players. Despite adequate sales, these players are facing low profits and turnovers. Suppliers are adopting a cautious stance, choosing to wait for market stabilization before promptly accumulating inventories as necessary. As of this quarter, the price of Phosphorus Acid concluded at 1730 USD/MT, marking a notable decline of 13.06%.
Europe
In the European region, the price of Phosphorus Acid has experienced a downward trend in the fourth quarter of 2023, primarily linked to a reduction in the price of Phosphate rocks from the sourcing nation. The initial data for 2023 from the economic accounts for agriculture (EAA) reveals a year-on-year decline of 6.6% in the index of agricultural labor productivity in the EU, contrasting with the growth observed between 2019 and 2022. The agricultural sector has grappled with challenges to productivity growth, including the impact of climate change and pressures on vital natural resources. Despite the challenges, the sector has seen an increase in farm sizes, contributing to productivity growth, albeit at a slower pace than in recent years. This broader trend reflects lower demand from the fertilizer sector, influenced the overall demand for Phosphorus Acid in the market. Key industrial players are experiencing margin and profit contractions due to pricing pressures from the international market. In the German market, the availability of Phosphorus Acid has remained moderate, driven by subdued demand from the downstream sector. Suppliers, noting reduced bidding activities, are actively accumulating inventories. The pricing trend suggests that this accumulation has been ongoing for several months, indicating a satisfactory stock level within the industries. As of this quarter, the price of Phosphorus Acid in the European region concluded at 1700 USD/MT, marking a notable decline of 13.26%.
APAC
In the Asia-Pacific (APAC) region, the price of Phosphorus Acid has undergone a decline in the fourth quarter of 2023, primarily associated with a reduction in the price of Phosphate rocks. This decline gained momentum this quarter, driven by diminished demand in the downstream market and the ongoing decrease in the price of Phosphorus Trichloride. The continuous contraction of China's manufacturing activity for the third consecutive month in December surpassed expectations, introducing uncertainty regarding the country's economic recovery. This situation has prompted discussions about additional stimulus measures in the upcoming year to bolster economic revitalization. In response to these market conditions, suppliers have chosen to lower their exquotation prices for Phosphorus Acid, contributing to the observed decline in prices. In India, Agricultural Ministry data indicated a reduction in Rabi crop cultivation to 62.96 million hectares by the last week of December 2023, compared to 64.61 million hectares during the same period in 2022. This decline in agricultural activities has led to decreased demand for Phosphorus Acid, reflecting weakened industrial activities and reduced downstream market demand. As of this quarter, the price of Phosphorus Acid in the APAC region concluded at 1580 USD/MT FOB-Shanghai, marking a significant decline of 15.05%.
For the Quarter Ending September 2023
North America
The Phosphorus Acid prices in the United States experienced a notable rise, primarily driven by strong demand from the fertilizer industry. This increase was further intensified by Russian fertilizer producers actively entering the US market due to higher local prices and increased stocking of fertilizers for the upcoming planting season. Additionally, the United States heavily relies on imports, particularly from China, to fulfill its domestic Phosphorus Acid needs. The already elevated costs of Phosphorus Acid in China pushed up US expenses, resulting in a direct price hike for Phosphorus Acid in the US market, reaching USD 1780/MT (CFR-Texas). The Phosphorus Acid supply chain has maintained its regular supply rate, and inventory levels have remained inadequate. Import availability surged, added to the increase in trading activities with firmer offers for bulk purchases from participants. The US fertilizer and automotive market showcased overwhelming market performance during August despite a high rate of inflation in the country. Hence, the demand for Phosphorus Acid remained strong.
Asia-Pacific
During the third quarter ending on September 2023, the price of Phosphorus Acid in the Chinese market saw a significant increase, primarily due to a rise in the prices of its raw material, Phosphorus Trichloride, thereby increasing the production cost of Phosphorus Acid reaching USD 1630/MT (FOB-Shanghai). In addition to this, the global fertilizer industry exhibited robust market momentum in August 2023, with Russian fertilizer producers actively entering the US market due to higher local prices and increased fertilizer stocking for the planting season. As the month progressed, Russian producers expanded their sales efforts, extending their reach to the UK and French markets, with intentions to continue this growth in the coming months. Consequently, with the growing demand for fertilizers, Phosphorus Acid consumption surged, eventually resulting in its increased market value. Furthermore, due to the Golden Week in China in October 2023, trading activities were increased in the previous few weeks to accumulate the stocks in the storage units for the anticipated demand from the downstream agrochemical enterprise due to which the availability of the containers and vessels decreased which led to the price hike of the commodity.
Europe
In the European market, the price trend of Phosphorus acid inclined in the 3rd quarter ending on September 2023 due to the increased demand from the downstream fertilizer sectors. Furthermore, Germany is majorly dependent upon China for imports of Phosphorus Acid to meet the demand from the domestic fertilizer market. Since the prices of the commodity were at elevated costs in China, Germany imported the product at a higher expense. Hence, the prices of Phosphorus Acid increased in the German market as well. As the demand was high from the domestic market, the supply of the product was maintained as well to have sufficient inventory levels to fulfill the rising demand, but due to increased demand, the continuous consumption of the commodity was done at a higher rate, resulting in the insufficient inventory levels. Trading activities in Germany also improved with high purchasing activities among the manufacturing units, which provided an opportunity for the Chinese suppliers to raise their quotations for the German buyers.
For the Quarter Ending June 2023
North America
The market prices of Phosphorus Acid plunged in the North American market during Q2 of 2023, as per ChemAnalyst market team data. It appears that a range of internal and external market drivers collectively contributed to the dip in the prices of Phosphorous Acid (or "Phosphonates") in the American market during the second quarter of 2023. While market sources indicate potential demand growth opportunities may exist in selected regions spanning Latin America, the primary focus remains fixed firmly upon Asia, where most players currently hold long-term agreements with offshore customers through midyear 2023. Additionally, both local Indian producers, along with those from South Korea, operate under the impression they can comfortably ride demand growth with less fear of new entrants emerging or capacity expansion pressures influencing existing manufacturing operations based outside this region since late Q4 2022. Unsurprisingly, no further news flowed through regarding China-driven price hikes until just recently when market sources relayed some Chinese suppliers resorted to suggesting double-digit increases after previously quoting low levels of liquidity amidst ongoing speculation about possible shutdowns linked to local smog issues in March 2023 coupled with seasonality risks inherently tied to a traditionally weaker buying period occurring before the commencement of the peak summer season in April whereby volumes then start picking back up again via May going forward into July. By contrast, the mood surrounding European market activity remains quite stable without significant causes for concern, although notices were sent circulated about limited availability stemming from scheduled plant maintenance programs already programmed to occur later in the year.
Asia
The market price of Phosphorus Acid plunged in the Asian market to USD 1540/ton, 99% FOB Shanghai. A combination of internal and external dynamics contributed to the slump in the prices of Phosphorous Acid in the Asian market. Internal factors include changes to supply and demand fundamentals in India and Indonesia, while market participants report some minor adjustments taking place in domestic markets throughout India and China towards tighter control measures around Sulphur content emissions targeting coal-fired power plants. Furthermore, uncertainties abound about how best to handle these regulations, given the likelihood of stricter environmental laws in force post the Summer Olympics event in Tokyo. Another reason for the drop in prices could be attributed to a lackluster buying appetite from Chinese importers owing to the impact of the COVID-19 pandemic and resultant labor disruptions, which led to delays and extended lead times for deliveries amid tight market conditions. Other contributing factors comprise reports that Chinese buyers are gradually returning to the import business, albeit still cautiously and willing only to buy prompt requirements based on a need-to-basis approach rather than stock building. With respect to export markets into India or directly into Vietnam/Indonesia outlets, suppliers appear ready to meet customer needs. At present, buyers remain extremely selective due to lingering uncertainties over future demand developments and whether any uptick in activity will materialize in the coming months. Finally, the relatively calm geopolitical landscape prevailing internationally alongside low energy prices continues to support steady supplies to meet worldwide demand.
Europe
The prices of Phosphorus Acid plummeted in the German market with USD 1660/ton 99% CFR Hamburg as per market team data. The dip in the prices of Phosphorus Acid (or "Phosphonates") experienced in the German market during the second quarter of 2023 was likely influenced by multiple factors, including production cutbacks made at certain facilities belonging to key industry players, which indirectly served to limit overall sector output and hence helped stabilize costs. Additionally, market sources claim that following the end of January, strong Asian buyer interest reappeared as previously reluctant clients became increasingly eager to purchase needed cargo lots ahead of the traditional seasonal upswing expected during early Q3. These renewed imports included initial volumes originating from India, followed shortly afterward by additional purchases sourced domestically elsewhere throughout Southeast Asia. Furthermore, despite acknowledged challenges associated with obtaining necessary import licenses related to increased scrutiny placed upon incoming shipments from abroad, it seems likely more companies intend to participate in the Asian arena going forward versus what had been witnessed earlier last year during the heightened virus-induced downtime phase. Meanwhile, similar reports suggest competitors have also resumed actively exploring commercial viability within nearby areas like the Russian Federation marketplace, where gains can potentially arise either through exports or direct investment projects involving local third parties who require partnership support services aimed primarily toward satisfying evolving customer demands connected to specialized technologies employed in advanced water treatment solutions using polymer technology based chemistries. As such, these combined events possibly played a role in dampening average asking figures quoted among German traders throughout the second quarter, translating eventually into noticeable discounts for bulk order sizes relative to baseline expectations.
For the Quarter Ending December 2021
North America
North American Phosphorous Acid market remained firm during Q4 2021 due to the consistent demand for the product from the downstream sectors. The growth for Phosphoric acid has become very moderate, and the demand has reached a maturity phase in several developed countries. Phosphorous acid has a great demand due to increased agricultural activities and certain rules & regulations imposed over them by the government. Because of progression in agricultural activities of Q4,2021 which resulted higher demand, affecting overall pricing dynamics. Thus, Q4 of 2021 has come to the closure by keeping firmness in prices of upstream and downstream products of phosphorous acid.
APAC
Asian market witnessed an upward trajectory in the price of Phosphorous Acid in the fourth quarter of 2021. The pandemic limitations, coupled with trade disruptions due to container shortages have hindered the supply chains in the region. Furthermore, rapid growth in the agriculture sector ahead of Rabi Season have further raised offers amidst soaring demand. Also, with shutdown of Ningbo Port in China due to the zero-tolerance policy in covid-19 have affected supplies in China. Natural gas crisis and Power rationing in China have curtailed production at some areas. Consequently, the prices of Phosphorous Acid maintained the upwards trajectory in the APAC region.
Middle East
After restriction over exports of DAP and its key raw material by Chinese authorities till second quarter of 2022, the demand for phosphorous acid presumed sky-scrapper in the fourth quarter of 2021. In the fourth quarter, Morocco shipped 100915.2 MT of Phosphoric Acid with a trade value of USD 100 million, resulting in an influx of queries from Indian downstream purchasers. As a result of the strong demand forecast, Phosphorous acid producers decided to raise price at the end of this quarter.
For the Quarter Ending September 2021
North America
In the North American domestic market, the overall demand outlook remained stable in the third quarter of 2021. The demand from the Fertilizers and insecticides sector remained dampened in this quarter. However, improvement in the offtakes from other downstream industries, including N-phosphonomethyl iminodiacetic acid (PMIDA) and Amino Trimethylene Phosphonic Acid (ATMP), kept the overall demand rate stable. Most of the production units remained shut for around two weeks as a repercussion of the hurricane Ida that made landfall in the US Gulf coast at the August end, which caused huge damage and power outages in the country. It consequently impacted the supply of Phosphorus Acid and led to the marginal hike in its prices in this quarter in the region.
Asia
During the third quarter, Phosphorus Acid prices soared in the Asian market owing to the inflation in the prices of upstream Phosphoric Acid and the robust demand from the downstream sectors. In India, Phosphorus Acid prices traced an upward trajectory backed by the consistent demand from downstream Agriculture and other sectors. As most of the Phosphorus Acid is imported from China, another factor that firmly supported the rise in Phosphorus Acid prices was the congestion on several China ports due to the shutdown of Ningbo port following the zero-tolerance coronavirus policy, which resulted in the disturbance in the supply chain. Moreover, exorbitant freight charges and unavailability of shipping containers also sent ripples to the prices of Phosphorus Acid in India during this quarter. Phosphorous Acid CFR-Kandla prices rose to USD 1214.96 per MT in September witnessed a hike of around USD 210 per MT since July, supported by the gap in Phosphorus Acid demand and supply in the region.
During the third quarter, Phosphorus Acid prices soared in the Asian market owing to the inflation in the cost of upstream Phosphoric Acid and the robust demand from the downstream sectors. In India, a major part of Phosphorus Acid is imported from China. The shutdown of Ningbo port in China following zero-tolerance coronavirus policy results in disruption in the supply chain. Demand for Phosphorous acid from downstream agriculture and other sectors was robust, and the supply chain disruption raised the price of phosphorus acid. Phosphorous Acid CFR-Kandla prices rose to USD 1214.96 per MT in September, which witnessed a spike of around USD 210 per MT since July, supported by the gap in Phosphorus Acid demand-supply fundamentals in the region.
Europe
European market also witnessed an upward rally in the pricing trend of Phosphorus Acid in this quarter owing to the constraint supply. Besides, an improvement in the offtakes from the downstream industries was observed this quarter. Moreover, lower production rates owing to the natural gas crisis further exerted pressure on the Phosphorus Acid market in Europe. Additionally, supply chain disruption as an impact of Ida hurricane and congestion on several ports of China also influenced the Phosphorus Acid prices in the global market. Some other factors, such as constantly increasing Freight charges and limited availability of shipping containers, further sent ripples to the values of Phosphorus Acid in Europe.
During quarter 3, phosphorus acid prices surged in the European market. Demand for Phosphorus Acid improved from downstream industries, but due to the energy crisis, production of Phosphorus Acid declined, which resulted in a price hike. Additionally, hurricane Ida and the shutdown of Ningbo port in China destabilized the market dynamics of Phosphorus Acid globally. Persistent factors, such as constantly increasing Freight charges and limited availability of shipping containers, further increase the values of Phosphorus Acid in Europe.
For the Quarter Ending June 2021
North America
Phosphorus Acid demand remained firm across North America region during Q2 2021. The demand for pesticides was high in the meantime, as the agrochemicals sector flourished following clear weather, which boosted the demand for several fertilizers and insecticides in the USA. The demand for the downstream derivatives like PMIDA (Phosphonomethyl Iminodiacetic Acid), and ATMP (Amino Trimethylene Phosphonic Acid) remained significantly high during this timeframe, which supported its prices. In addition, limited availability of corn across the region also exacerbated the overall demand for pesticides and herbicides in the meantime.
Asia
Asian market witnessed high demand for Phosphorus Acid during this quarter. The demand was mainly driven by agrochemicals sector. In China, prices rose due to the shortage of downstream insecticide Glyphosate in the country, which pushed manufacturers to increase the production of other insecticides to satisfy the overall demand in the domestic and global market. Meanwhile in India, the demand remained modest to firm during this quarter, bolstered by significant offtakes from the domestic agrochemicals sector. Moreover, no such significant impact of second wave of pandemic was observed on demand for insecticides. However, prices underwent a modest rise due to supply hurdles from China.
Europe
Europe also witnessed modest offtakes for Phosphorus Acid this quarter, bolstered by modest to low demand from the domestic agrochemical sector. European countries reduced the consumption of Glyphosate across the region due to environmental and health concerns. Therefore, it increased the demand for other insecticides and herbicides across the region, which ultimately increased the demand for Phosphorus Acid derived agrochemicals. In addition, some other factors like freight cost and transportation hurdles also affected the prices of agrochemical products in Europe.
For the Quarter Ending March 2021
North America
Demand for Phosphorus Acid remained narrow throughout the quarter across North America region. However, the demand from water treatment plants was observed sufficiently higher than other segments. Moreover, the demand from downstream glyphosate manufacturers remained low, as Glyphosate has been banned in several states of USA due to health and environmental concerns. In addition, in agriculture segment, demand for pesticides and herbicides remained low during this timeframe in North America.
Asia
In the Asian market, demand for Phosphorus Acid remained low, despite of plantation season in India and China. China is a leading producer and exporter of downstream Glyphosate, as it is one of the most favourable herbicides among Chinese farmers. However, ample supply activity across the region by China, deaccelerated the prices of Phosphorus Acid and its derivatives products. In the Indian market, prices remained low due to feeble demand from local agriculture segment till February end. In addition, experts anticipated that the demand may improve in Q2 after monsoon in India.
Europe
In Europe, some important decisions regarding downstream Glyphosate by several European countries affected the demand for Phosphoric Acid in this quarter. Last year, France announced regulations on using downstream Glyphosate, but later in December 2020, the French authorities announced that they will offer monetary aids to the farmers who will lessen the usage of Glyphosate. These decisions effectively reduced the consumption of Phosphorus Acid, regardless of arrival of spring season and booming agrochemicals market. The demand is further expected to go down, as several other countries are planning to stop using downstream Glyphosate.
Quarter ending result for December 2020
North America
In the North American region, several natural calamities badly impacted the Phosphorous Acid market outlook during Q4. The region witnessed multiple hurricanes all over the year which impacted the Cote Blanche mines, hurricane zeta in November also left bad impact on the mine’s activity which let to shortage of phosphorus-based minerals. The industry seemed to recover from the record low prices observed during Q2 in the fourth quarter, giving a sigh of relief to the industry players. However, the quarter ended with the announcement of the Mexican agricultural department that they will completely halt the usage of derivative glyphosate by 2024. This is likely to reduce the demand of phosphorus acid from the agriculture sector in Mexico in the coming years.
Asia
Major Asian countries like China and India have enough capacity for producing phosphorus acid and its feedstock PCl3. China is the leading producer of and exporter of downstream Glyphosate, which is a popular herbicide among farmers and produced using Phosphorus Acid. During Q4 2020, China faced no supply problem of Phosphorus Acid and traders saw more than enough availability of Glyphosate in the country. Buoyed by strong demand fundamentals and recovery from the COVID-19 pressure, the Indian Phosphorous Acid industry reported market gains during the quarter ending December. Prices of feedstock PCl3 scrolled down in effect of high supply from the manufacturers.
Europe
Demand for phosphorus acid remained pressured from the agriculture sector in several European countries. EU found that the usage of weedkiller glyphosate is carcinogenic, and they advised the countries to mark restrictions on its usage. In October 2020, France announced restrictions on the usage of downstream glyphosate, but later in December 2020, the French government announced that they will provide financial aids to the farmers who will reduce the usage of glyphosate. Eventually these decisions will impact the usage and demand of phosphorus acid from the agriculture sector. Overall, the market outlook remained well supported by prospects turning positive for other downstream sectors amidst strong economic revival expected post the vaccine roll out.
