First, the price trend
This week, the yellow phosphorus market continued to be weak, the price market continued to decline, and the manufacturers’ price mentality was no longer. At the beginning of the week, the average price of yellow phosphorus was stable at 14,433 yuan/ton, and the average price at the weekend was 14,366 yuan/ton. At present, the actual transaction price in the domestic market is seriously reduced. The actual transaction price in Sichuan and Yunnan is quite different, and the lowest is even at 13,800 yuan/ton. The actual transaction price in Guizhou is relatively uniform, about 14200-14300 yuan / ton. In the face of bad market, the manufacturers have a good price mentality, and are unwilling to lower the factory price. Some enterprises have a high price, basically biting the 14400 yuan/ton line, but the bargaining power is insufficient, and the actual price decline is far above 100 yuan/ton. .
Second, the market analysis
Product: The operating rate of yellow phosphorus in July is slowly rising. In the early stage, due to environmental pressures, the production of a large number of enterprises has been reduced due to the suspension of work, resulting in a large supply of yellow phosphorus in short supply and tight shipping conditions. Continued to the end of July, attracted a lot of production stoppages to start the operation, into August, only the first two weeks of the yellow phosphorus market once again showed a downward trend. The overall downstream demand in China has not improved, and the operating rate of yellow phosphorus has not decreased, resulting in further intensification of market share competition. The supply and demand balance has fallen from the demand side in early July to the supply side in early August, and suppliers no longer have market voice.
Industry chain: The price of phosphate ore in the upstream has continued to be high this week. The mainstream offers have been raised by RMB 30/ton. The equipment started normally and the supply is stable and normal. There is no yellow phosphorus manufacturer in the near future that the upstream goods are difficult to get. The market price of downstream ammonium phosphate is bullish. Most enterprises are in short supply and demand is low, which drives the downstream demand of phosphoric acid. However, the overall operating rate of ammonium phosphate and phosphoric acid in China is still low, and it is difficult to pull demand for yellow phosphorus in the short term.
Third, the market outlook
Yellow Phosphorus analysts of the Chemical Industry Chemicals Branch believe that the downstream demand for yellow phosphorus is fixed, but the recent operating rate has increased significantly, especially the small and medium-sized production capacity has entered the market positively, and the market competition is fierce. It is expected that the market price of yellow phosphorus will remain weak in the short term.