For the Quarter Ending September 2024
North America
In Q3 2024, the yellow phosphorus market in North America experienced a decline in prices, primarily driven by subdued demand from the agricultural sector, unfavorable weather conditions, and cautious purchasing behavior. The overall market sentiment was largely negative, with prices following a consistent downward trend. The USA, in particular, saw notable price changes between the first and second halves of the quarter.
This decline can be attributed to a combination of low demand, disruptions from adverse weather, and uncertainties within the agricultural sector. Additionally, plant shutdowns contributed to supply constraints, further influencing the bearish market outlook. The ongoing volatility in agricultural production and the resulting impact on fertilizer application have added to the challenges faced by producers.
As manufacturers grappled with these market dynamics, the quarter concluded with yellow phosphorus priced at lower levels, underscoring the prevailing downward pricing trend in the region. Market participants remain cautious about future developments, closely monitoring demand trends and supply chain stability as they navigate the upcoming quarters.
APAC
In Q3 2024, the APAC region experienced a significant increase in yellow phosphorus prices, driven by various interrelated factors. Supply constraints stemming from disruptions in manufacturing activities and adverse weather conditions were pivotal in propelling prices higher. The market faced moderate to high supply levels, with manufacturers operating at normal capacity but encountering challenges related to logistics and extended shipping times.
Demand remained steady, with regional fluctuations noted across different markets. China particularly experienced the most pronounced price changes, with prices steadily increasing throughout the quarter. The overall trend in China showcased a bullish sentiment, characterized by stable demand coupled with limited supply, which contributed to the upward price movement. Seasonal factors and global market dynamics also played a role in influencing pricing trends.
While there was a slight decrease from the previous quarter, the quarter-ending price in China was positioned at elevated levels, reflecting a favorable pricing environment marked by rising prices. Additionally, plant shutdowns during the quarter further affected supply dynamics, reinforcing the overall upward price trend.
Europe
In Q3 2024, yellow phosphorus pricing in the European region experienced a notable decline, with Germany seeing the most significant price fluctuations. The quarter was marked by a negative pricing environment driven by several factors. Adverse weather conditions impacted production capabilities, leading to reduced demand for yellow phosphorus in various applications, particularly in agriculture and industrial sectors. Furthermore, sluggish global demand and uncertainties in key markets exerted downward pressure on prices. The quarter recorded a considerable decrease compared to the previous quarter, reflecting the persistent challenges facing the market. In Germany, the pricing trend mirrored the overall European pattern, with prices declining significantly between the first and second halves of the quarter. Additionally, supply constraints were exacerbated by plant disruptions, including maintenance shutdowns at key facilities and operational challenges, which further impacted product availability during the quarter. These disruptions not only limited supply but also contributed to an overall sense of uncertainty among market participants, as they struggled to navigate the fluctuating conditions.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Yellow Phosphorus market in the USA showed a generally bearish trend. Prices continued to decline due to reduced demand from downstream industries, particularly in agriculture, which led to an accumulation of inventories. The downstream sector remains sluggish, with purchases made mainly on an as-needed basis. Farmers have scaled back on fertilizer use due to cost and availability concerns, contributing to the drop in prices.
Supply-side challenges, including production constraints in Europe, sanctions on Russia and Belarus, and trade restrictions in China, have also played a role in the decline. As a result, the overall market has experienced a downturn, with market activity remaining subdued and businesses operating at a slower pace.
In North America, particularly in North Dakota, farmers faced disruptions caused by geomagnetic storms, which halted planting operations until the effects of the solar storm subsided. Additionally, demand from international markets, including European countries like Norway and Spain, was subdued due to severe windstorms and floods. These domestic and international factors collectively led to a significant decrease in overall demand.
APAC
In Q2 2024, the Yellow Phosphorus market in the APAC region experienced significant price increases, driven by multiple factors. The primary reason for the price hike was the improved consumer demand in downstream industries. Supply constraints also played a crucial role, particularly due to unscheduled plant shutdowns in China. Various manufacturers, including Leshan Jinguang Chemicals Co., Ltd., Sichuan Linhe Industrial Group Co., Ltd., and Chengdu Wintrue Holding, experienced temporary closures due to an earthquake in late May.
Additionally, flooding in Hubei in June affected plants like Yichang Yatai Chemical Co., Ltd. and Hubei Xingfa Chemicals Group Co., Ltd., further tightening supply. The increased production costs, resulting from higher feedstock prices, also contributed to the bullish market sentiment. Focusing exclusively on Japan, Yellow Phosphorus prices exhibited the maximum changes. This increase was characterized by robust demand from the downstream phosphoric acid manufacturing industries and an anticipated improvement in the agricultural sector.
Despite an overall negative trend of -2% from the previous quarter in 2024, the pricing environment remained positive. The seasonality and correlation in price changes indicate a consistent upward trajectory, ending the quarter with a price of USD 3920/MT CFR Tokyo. This reflects a stable to bullish sentiment for Yellow Phosphorus in Japan, driven by supply disruptions and escalating production costs.
Europe
In the second quarter of 2024, the European Yellow Phosphorus market exhibited a bearish trend. Prices continued to fall due to diminished demand from downstream industries, particularly in agriculture, resulting in an inventory buildup. In the first month of Q2, prices in Germany declined due to weak consumer demand and global market pressures, further impacted by tensions in the Middle East. Despite maintenance shutdowns in exporting countries’ plants, European prices remained largely unaffected due to low demand in the agrochemical sector.
Mid-Q2 saw varied weather conditions across the European Union impacting agricultural activities. Excessive rainfall in Western Europe caused waterlogging and increased pest pressures, leading farmers to delay fertilizer investments. Countries like the UK, Germany, and the Netherlands experienced a wet winter and spring followed by warm weather, worsening pest issues and discouraging bulk purchases. These fluctuating weather patterns created an unpredictable agricultural environment, affecting demand.
In the last month of the quarter, Yellow Phosphorus prices in Germany edged up slightly due to supply constraints caused by rising water levels in the Rhine River, which delayed shipments. Despite global market uncertainties and geopolitical tensions, German prices showed some resilience, supported by stable benchmarks and modest demand dynamics.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Yellow Phosphorus market in the USA exhibited bearish tendencies. Prices continued to decline during this period due to reduced demand from downstream industries in the agriculture sector, leading to inventory accumulation. Additionally, industrial activities contracted, as indicated by a decrease in the manufacturing PMI, although conditions improved slightly in the final month.
The fertilizer industry displayed low consumption rates, particularly during freezing temperatures, contributing to weak demand from downstream industries. Consistent purchasing activity was lacking in other downstream markets, resulting in stagnant market sentiments. Despite this, Yellow Phosphorus prices in North America saw a slight increase over the quarter. During this period, the supply chain constraints also impacted the market due to delayed shipments and higher freight charges.
However, demand from other downstream markets such as the phosphorus trichloride sector remained weak throughout the quarter. In summary, the North American Yellow Phosphorus market experienced an overall downward trend in the first quarter of 2024, influenced by factors such as demand from downstream industries, industrial activities, and supply considerations.
APAC
In Q1 2024, the pricing dynamics of Yellow Phosphorus in the APAC region were influenced by a combination of factors. While the overall trend in pricing was relatively stable, there were notable fluctuations in the Japanese market. These fluctuations were driven by factors such as the seasonality of demand, market sentiment, and the availability of cheaper imports Compared to the last quarter of 2023, prices decreased by USD 50/MT (-1.3%).
In Japan, the market situation for Yellow Phosphorus was bearish, with high supply and low demand. The inventories of the product were ample, and imports from countries like Vietnam, offering discounted rates, contributed to the oversupply. The sluggish demand was evident in decreased inquiries from downstream industries like fertilizers, fireworks, and rodenticides, as consumers had ample inventories and were not procuring supplies due to the Lunar New Year holidays and Lantern Festival.
In conclusion, the pricing dynamics of Yellow Phosphorus in Q1 2024 in the APAC region were influenced by reasons such as market sentiment, and availability of cheaper imports. The Japanese market experienced fluctuations, with a bearish market situation and decreased demand. The final quarter's price for Yellow Phosphorus CFR Tokyo in Japan was USD 3920/MT.
Europe
In the first quarter of 2024, the Yellow Phosphorus market in Europe saw a downward trend as prices decreased consistently. Demand for Yellow Phosphorus in the region was lackluster, driven by sluggish inquiries from fertilizer manufacturers and a drop in imports from overseas markets. Additionally, manufacturing production in the Eurozone declined, contributing to the bearish market conditions.
The supply of Yellow Phosphorus was moderate, with average import rates from the fertilizer industry and limited uptake from the consumer market. Production costs also eased during this period due to manageable gas prices. In Belgium, Yellow Phosphorus prices declined in Q1 due to stagnant demand conditions. Agriculture's seasonal demand remained low amid unfavorable weather conditions.
Downstream industries faced limited consumer inquiries, further dampening market sentiments. Notably, there were high product inventories and visible destocking activities by consumers in the region. The reduction in industrial activity, influenced by both weak consumer demand and poor economic performance, prompted manufacturing companies to either scale back operations or temporarily suspend them.
For the Quarter Ending December 2023
North America
The Yellow Phosphorus market in the USA showcased mixed sentiments in the fourth quarter of 2023. Initially, prices saw a slight decline due to a slowdown in demand from downstream industries, resulting in the accumulation of inventories. Furthermore, industrial activities contracted, as evidenced by a decline in the manufacturing PMI.
However, the fertilizer industry demonstrated robust demand, driven by consistent purchasing activity and improved market sentiments. In North America, Yellow Phosphorus prices experienced a marginal increase during the quarter. This uptick was fueled by strong demand from the downstream fertilizer industry and an overall improvement in industrial activities. Notably, there were no reported plant shutdowns in the market during this period.
Apart from the fertilizer industry, the demand from other downstream markets such as the phosphorus trichloride market was observed to be stable in this quarter. In summary, the North American Yellow Phosphorus market witnessed a mixed trend in the fourth quarter of 2023, with factors such as demand from downstream industries, industrial activities, and supply considerations influencing price dynamics.
APAC
In the fourth quarter of 2023, the Yellow Phosphorus market in the APAC region experienced a bullish trend. The prices of Yellow Phosphorus increased due to imports of higher-priced goods and improved demand from the Asian market. Demand for Yellow Phosphorus was steady, driven by increased procurement from downstream fertilizer, fireworks, rodenticides, and other related industries. The market transaction pace picked up as consumers stocked up ahead of the sowing season. In Japan, the prices of Yellow Phosphorus increased by 1.3% in the quarter, reaching USD 3980/MT (CFR Tokyo). The Japanese Yen appreciated by 1.73% against the US Dollar during this period. However, the overall market fundamentals of Yellow Phosphorus turned bearish, with declines in overseas inquiries from downstream industries and a drop in demand from phosphoric acid manufacturing industries and the agriculture sector. The latest prices of Yellow Phosphorus in Japan in the quarter ending December 2023 was USD 3980/MT (CFR Tokyo). This represents an increase of 1% compared to the previous quarter and a 12% change compared to the same quarter last year. The price comparison between the first and second half of the quarter showed a decrease of 1%. Overall, the Yellow Phosphorus market in the APAC region, particularly in Japan, experienced price increases and improved demand from various industries.
Europe
In the fourth quarter of 2023 (Q4), the market for Yellow Phosphorus in Europe experienced mixed conditions. The demand for Yellow Phosphorus in the region was strong, driven by improved inquiries from fertilizer manufacturers and steady imports from overseas markets. However, the Eurozone's manufacturing production fell, resulting in a bearish market situation. The supply of Yellow Phosphorus was moderate, with increased import rates from the fertilizer industry and higher offtakes from the consumer market. Production costs increased due to higher gas prices and costlier raw materials. In Belgium, the prices of Yellow Phosphorus rose in Q4 as demand conditions improved. Belgium and the Netherlands were the top two fertilizer suppliers to Germany during the first half of 2023. In December, prices continued their decline due to sustained subdued demand. Downstream industries experienced limited consumer inquiries, contributing to negative market sentiments. During this period, there were notable high product inventories and observable destocking activities by consumers in the region. The reduction in industrial activity, influenced by both year-end holidays and destocking efforts, prompted manufacturing companies to either scale back their operations or temporarily suspend them.
For the Quarter Ending September 2023
North America
The Yellow Phosphorus market in the USA showcased mixed sentiments in the third quarter of 2023. In the first two months, the prices plummeted owing to a poor demand outlook as the consumers in the downstream fertilizer, pesticide, herbicide, and other end-use sectors had low inquiries. As per the market participants, the domestic inventories were at lower levels amid weak consumer demand, whereas the imports of low-priced goods in the region also supported the price decline of the product. Albeit in September, the prices improved in the region on the back of imports of higher-priced goods, whereas the demand conditions also improved in this period. However, the demand from the downstream Phosphorus Trichloride market was low throughout this period, and, as pointed out by the market participants, the battery manufacturing firms were maintaining high inventories of the product, whereas the procurement was lagging due to falling prices. Additionally, high inflation, high interest rates, and recessionary pressure constantly affected the businesses in the region.
APAC
In the third quarter of 2023, the Yellow Phosphorus market in the Asia-Pacific region demonstrated mixed sentiments, and the prices oscillated in this period. In the first two months of this quarter, the Yellow Phosphorus market sentiments deteriorated in the Vietnamese domestic market as demand for the commodity remained low. The consumer market remained repressed, while inquiries from downstream fertilizer and other end-use sectors lagged. Although the manufacturing PMI increased slightly in July to 48.7 from 46.2 in June, it nevertheless indicated a contraction in the manufacturing sector as businesses struggled to secure new orders and curtailed production accordingly. In September, the Yellow Phosphorus market in Vietnam had a positive trend as demand from downstream sectors strengthened. This month saw a surge in queries from the downstream fertilizer, pesticide, herbicide, and other end-use sectors as customers stocked up on supplies ahead of the planting season. According to the manufacturing PMI statistics, domestic manufacturing firms were somewhat underperforming, and output rates were a little slow. Overall, market transactions rose, and trading activity increased. As of September 2023, the prices of Yellow Phosphorus in Vietnam were assessed at USD 3890 per tonne.
Europe
Europe’s yellow phosphorus market exhibited bearish sentiment in the third quarter of 2023. Throughout Q3, the prices plummeted on a week-on-week basis due to sluggish demand from the downstream fertilizer, pesticide, herbicide, and other end-use industries. However, due to high inflation, higher interest rates, and fluctuating raw materials and energy prices, consumers mostly purchase on a need basis as inflationary pressure continued to loom the business sentiments in the region. The eurozone economy shrank in this quarter as per the surveys done by a few market participants that showed that demand fell at the fastest pace in the past three years amid consumer spending remaining low owing to rising borrowing costs and higher prices. Additionally, the manufacturing sector PMI data suggested a contraction in industrial activity as both outputs in the services and manufacturing sectors declined. Additionally, procurement from battery manufacturing businesses was disappointing due to low demand, while the electric car sector showed no indications of revival. Furthermore, the global electric vehicle battery market remained subdued in Q3 due to sluggish demand.
For the Quarter Ending June 2023
North America
Prices of yellow phosphorus show a floating trend in the second quarter of 2023. In the months of April and May 2023, the prices increased by 8.2 percent because of the low inventory of stocks and increased demand from downstream industries like fertilizers, EVs, and defense. The war in Ukraine has led to a global price rise in the price of yellow phosphorus, as some researchers conclude. In the month of June 2023, the prices of yellow phosphorus moderated and slightly declined. The demand from the downstream fertilizers reduced while companies and defense remained stable due, and inventory levels remained high. Imports from Vietnam helped moderate the price as it cost USD 5450/MT in June 2023. United States. Inquiries reveal that the demand for yellow phosphorus may decline in the coming months because of the Federal Tax Credit new policy and reduced demand from the EV sector. According to Cox, at the end of June, dealers had, on average, about a 53-day supply of internal combustion vehicles in stock. The inventory runway for EVs, on the other hand, was more than double that. Overall, there were more than 92,000 electric vehicles available in the second quarter, compared to about 20,000 a year prior.
APAC
Prices of yellow phosphorus show a floating trend in the second quarter of 2023. In the month of April 2023, the prices decreased by 12.6 percent because of decreased demand from downstream industries like fertilizers, EVs, and defense. The Inflations Reduction Act 2022 has led to reduced imports to the USA from China, leading to a decrease in overseas demand for Chinese yellow phosphorus exports. In the months of May and June 2023, the prices of yellow phosphorus moderated and slightly increased. The demand from the downstream fertilizers increased while companies and defense remained stable due, and inventory levels remained high. Export performance to India and other countries improved and supported the moderation of the price as it cost USD 3192/MT in June 2023. Inflationary pressure, the economic slowdown in Europe, and the slow economic recovery in China have led to both demand and supply shocks in the second quarter of 2023. In the Vietnamese market, the prices remained volatile for the second quarter, with oscillations between FOB USD 4500/MT to USD 5000/MT.
Europe
Prices of Yellow phosphorus showed a bearish trend in the second quarter of 2023. In Belgium, the price decline is supported by a negative cost push from feedstock sulfuric acid and petroleum. The demand situation remained bleak throughout the second quarter of 2023. Strong cost pressures related to wage increases and tighter financial conditions are projected to continue weighing on business investment. Employment decelerated in the last quarter of the year amid subdued economic activity. The downstream industrial demand is expected to be subdued due to weak economic indicators and volatile energy prices.EU is expected to go into a technical recession with moderate to high inflation in Q3, which may further subdue the consumption of yellow phosphorus. Inquiries from vendors revealed that downstream industrial demand from the fertilizer industry is set to decline due to the availability of alternate forms of phosphorus for fertilizer production. Adding to Europe's woes, a slowdown in the United States and a weaker-than-expected recovery in China are also weighing on exports of downstream products.
For the Quarter Ending March 2023
North America
The Yellow Phosphorus market in the North American region has observed a mixed pricing trend in the first quarter of 2023. The market sentiments for the product were in positive territory in the first month of Q1 2023 amid increased production rates and a surge in demand from the downstream fertilizer industry. In the next two months of Q1, the market prices of Yellow Phosphorus plummeted owing to weaker demand in the downstream agriculture industry and suppressed inquiries from domestic as well as international market participants. The manufacturing activities were stable, and domestic manufacturing units operated steadily, maintaining adequate inventories of Yellow Phosphorus in the region. Also, the downstream demand from the Phosphorus Pentachloride market in EV battery manufacturing was low due to sufficient product availability and a drop in electric vehicle sales in the Asian markets.
APAC
The Yellow Phosphorus market in China showcased a mixed pricing trend in the first quarter of 2023. In the first month of Q1, the market prices increased due to a surge in demand as restocking activities were observed ahead of the Lunar New Year holidays. Although, the supply remained pressurized due to the authority’s direction to restrict power consumption. In the following two months of Q1, the demand remained sluggish in the domestic and international markets, and sufficient inventories of Yellow Phosphorus were present, leading to a disbalance in the supply and demand dynamics. Also, in March, the manufacturing PMI dropped due to a weaker demand outlook amid recession fear in the global market, the overall market prices slipped down, and bearish market sentiments prevailed in the region. The offered quotes for Yellow Phosphorus (99.9%) FOB Qingdao settled at USD 4454 per tonne at the end of Q1 2023.
Europe
The Yellow Phosphorus market in Europe exhibited mixed sentiments in the first quarter of 2023 due to uncertainties related to economic conditions as the central banks raised the interest rates to compete with the rising inflation. The demand for Yellow Phosphorus fluctuated throughout Q1 amid a weaker demand outlook from the downstream polymer and automotive industries in the region as the market consumers were reluctant for new purchases. Higher energy prices also affected the overall market of Yellow Phosphorus in the Eurozone. The manufacturing activities dropped throughout Q1 amid slower production rates and sluggish demand from domestic and international markets. The downstream Phosphorus Pentachloride market also has lagging demand for the product amid a drop in EV sales in the Asian markets.
For the Quarter Ending December 2022
North America
Overall, the Yellow Phosphorus market in the North American region has observed mixed sentiments in the fourth quarter of 2022. This development has been majorly attributed to the ongoing fertilizers shortages across the regions that have been coupled with the drop in the operating rates at the facilities by the month-end. The operating rates across the value chain have impacted the market as the market players have reduced the operating rates or temporarily suspended production as a precautionary measure of the Arctic storm in the US. At the same time, Vietnamese exports were also scrutinized after the authorities limited the volumes for export. As a ripple effect, the CFR Houston was assessed at USD 5721 per tonne in December 2022.
Asia Pacific
Overall, the Yellow Phosphorus market in Asia has showcased an ambiguous trend that varies across the subregions. The Chinese market has remained on an upward trajectory, and the discussions have remained stagnant for most of the quarter; however, the offers remain higher compared to the traditional quotations. At the end of the third quarter, the Chinese authorities imposed "Energy Efficiency Management" over the Yunnan province's "largest Yellow Phosphorus producing region" till the mid of the second quarter of 2023. In response, the operating rates at the facilities dropped in between when the world observed fertilizers shortages. Therefore, the supply-demand gap has soared tremendously in the spot market. However, during the quarter's end, the Chinese authorities eased COVID restrictions improving the arbitrage with Vietnam. Major producers stated, "with the border opening, constraints on procuring the raw material has eased considerably." As a ripple effect, the FOB-Saigon discussions for Yellow Phosphorus were assessed at USD 5460 per tonne in December 2022.
Europe
In the fourth quarter of 2022, the Yellow Phosphorus market in the European region has observed a slightly bearish outlook amidst the traditional off-season. The CFR Antwerp discussions for Yellow Phosphorus were assessed as a ripple effect at USD 5878 per tonne. In terms of supply, the region has consistently remained under a constraint as the production cuts in China have diverted the inquiries traffic toward other sources. Although, a drop in the offers of shipping freights has kept the additional cost under control, further coupled with the seasonal off-trend against the dropping temperature in the European markets.
For the Quarter Ending September 2022
North America
Overall, the Yellow Phosphorus market in the North American region witnessed mixed sentiments during the third quarter of 2022. However, significant imported volumes from the Southeast Asian markets have capped the prices of Yellow Phosphorus to shoot up further in the domestic market. In addition, the hovering high demand from the fertilizers segments, further coupled with rising inflation and concerns regarding food security, has kept market sentiments upwards. In addition, exports remained limited due to dull market activities in the European markets. As a ripple effect, the DDP USGC discussions for Yellow Phopshporus were assessed at USD 6080 per tonne during the September quarter.
Asia Pacific
The Yellow Phosphorus market in the Asia Pacific region observed mixed sentiments that varied across the sub-regions. Bearish sentiments dominated the dynamics in the Northeast Asian region for most of the quarter. However, the quotations rebounded significantly in the quarter's latter half, when the power rationing impacted the Chinese market. Whereas the Southeast Asian market was consistently moved in a downward trajectory due to a slowdown in offers from the Chinese suppliers that instigated the price-competitiveness amongst the market participants in APAC. As a ripple effect, the FOB Qingdao discussions for Yellow Phosphorus averaged USD 4664 per tonne in September.
Europe
In the third quarter of 2022, the dynamics of the Yellow Phosphorus market remained suppressed across the European regions. The orders were dominated based on a contract, whereas the spot inquiries remained dull amidst the summer holidays in the European region. In addition, the depreciation of the Euro against the US Dollar, followed by rising inflation in the region, has curtailed the offtakes to below average compared to the customs data on a year-on-year basis for the third quarter. In response, the offers for Yellow Phosphorus staggered slightly downward in September and averaged USD 6176 per tonne.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, the North American market for Yellow Phosphorus observed a sturdy upward trajectory in the market sentiments and prices. This development is majorly attributed to Russia's retaliatory measures against the sanctions imposed by the US and the UK with several other nations' help. In response, the demand from the overseas market, especially from western Europe, has soared drastically amongst the suppliers in North America. The US is also witnessing a food crisis as the global food index soared to a historic high at the beginning of the second quarter, followed by the supply-demand gap in the domestic market. As a ripple effect, the prices of the Yello Phosphorus remain sturdy in the US domestic market, and the discussions settled at USD 5980 per tonne during the quarter ending June 2022.
Asia Pacific
The Yellow Phosphorus market across Asia has heated up in the last month. The bullish sentiments remained persistent throughout May and will likely prevail its impact in June. This development in the market movement is majorly attributed to the resumption of arbitrage after the Chinese authorities uplifted a prolonged lockdown regarding the improvement of public movement and resumption of activities in the Chinese domestic market. Post-Shutdown, the operating loads at the Yellow Phosphorus facilities are not high in the Chinese market, and the operating loads remain suppressed with a minimal increase in the on-site operations. The sentiments in the spot market are tight, and the transactions were active with the prices. As a repercussion, the minimal availability of the Phosphate rocks and persistent inquiries soared the quotations. The FOB Qingdao discussions for Yellow Phosphorus were assessed at USD 5760 per tonne in May.
Europe
In the second quarter of 2022, the Yellow Phosphorus market in the European region remained bullish. This development is majorly attributed to the retaliatory measures by Russian authorities against the western sanctions imposed by the US and the UK with the support of several other nations. The Russian authorities decided to restrict the exports of the essential fertilizers ahead of the upcoming peak season in Europe, causing a sudden surge in demand for Yellow Phosphorus. The COVID restrictions in China hindered the imports of Yellow Phosphorus due to the port congestion. As a ripple effect, the discussions for Yellow Phosphorus were settled at USD 5970 per tonne in June.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, the North American market for Yellow Phosphorus observes a significant shift in the market dynamics. The domestic market swindled and the prices fluctuated at a range-bound in the first half of the quarter as the power rationing situation resolved in the Chinese and the arbitrage resumed by the end of the last quarter. Although, Russia started its special military operation in Ukraine created several uncertainties as the food pricing index persistently soared and the supplies for several major crops were uncertain. In response, several analyses showcased that the US will likely face a food crisis in the short term. Whereas the inquiries remain persistent from the downstream fertilizers and batteries industries. As a ripple effect, it strengthened the will of producers to raise the offered quotations for Yellow Phosphorus in the US domestic market, and the CFR Los Angeles discussions for Yellow Phosphorus were settled at USD 5932 per tonne, during the quarter ending in March 2022.
Asia Pacific
The Yellow Phosphorus market in the Asia Pacific region witnessed mixed sentiment during the first quarter of 2022. Such developments were majorly attributed to the persistently shifting market dynamics across the region of the Asia Pacific. The impact of the power rationing prevailed throughout the quarter. Although, the market sentiments again pressurized amidst the Lunar New Year holidays in China and Vietnam curtailed the supplies from the domestic market, followed by another fluctuation after Russia carried out its special military operations over Ukraine. The inquiries soared amidst the rising food pricing index and predictions related to the upcoming food crisis in the western nations. Although, the prices of Yellow Phosphorus remain buoyed amidst the adequate demand from the downstream industries. Therefore, the FOB Qingdao discussions for Yellow Phosphorus were settled at USD 5700 per tonne, during the quarter ending in March 2022.
Europe
In the first quarter of 2022, the market sentiments for the yellow Phosphorus in the European market remained bullish throughout the first quarter. These sentiments were majorly attributed to the staggering market dynamics for Yellow Phosphorus as the producer's quotations consistently strengthened amidst the supply constraints. Whereas, the conflict between Russia and Ukraine gyrated several commodities and the freight cost provided additional cost support to the quotations for Yellow Phosphorus. In addition, the Suez Canal authorities increased the tax rate by 5% which further pressurize the imported cargoes from the Asia Pacific. As a ripple effect, the quotations for the Yellow Phosphorus remain buoyed Europe.
For the Quarter Ending December 2021
North America
The Yellow Phosphorus market in North America eased after soaring to the historic high after taking cost support from the high freight charges. However, the offers remained buoyed in the US domestic market due to the seasonal demand from the downstream Fertilizers and EV batteries end-use sector. Whereas, the supplies were tight due to delayed deliveries from Southeast Asia, whereas numerous authorities across the globe restrict the export of ammonia and phosphate-based fertilizers amidst the rising food pricing index uplifted the market sentiments of Yellow Phosphorus in the US domestic market. In November a major player in the US imported 240 tonnes of Yellow Phosphorus at the rate of USD 4700 per tonne on a contractual basis.
Asia Pacific
In the Asia Pacific market, the Yellow Phosphorus market players took a big relief after the freight charges dropped by 25% for the overseas and regional deliveries. However, the restricted availability induced some hindrance in the Asian market after the deliveries were delayed and inquiries pile up. Whereas the persistent efforts made by the Chinese authorities curb the power rationing to some extent and the operating rates improve significantly in China. As a ripple effect, the Ex-Works Yunnan (China) discussion witnessed a drop of 25.13% with monthly average prices settled at USD 6090 per tonne in December.
Europe
In the fourth quarter of 2021, the European market for Yellow Phosphorus witnessed a slight relief after the offers from the Southeast Asian and Chinese suppliers eased after the freight charges were lowered and the operational rates in China rebounded substantially. However, the raw material market throughout Europe was drastically impacted by the ongoing energy crisis, and the export quota raised by the Russian authorities raised concerns regarding the supply glut for the downstream fertilizer sector and batteries electrolytes industries. As a ripple effect, the offers for Yellow Phosphorus remained firm throughout the fourth quarter of 2021 in the European domestic market.
