Price Trend

According to the monitoring data of business associations, since the beginning of August, the domestic phosphate ore market has been running steadily after a small fluctuation in late July. By August 8, the average price of 30% grade phosphate ore in China was around 420 yuan/ton.

II. Market Analysis

Products: Phosphate ore in July is affected by the overall industrial chain, demand has decreased, price has loosened. Since August, with the resumption of construction of the whole plant, supply and demand have basically returned to normal, and the market has entered a stable operation. As of August 8, 22% of the main grade phosphate ore in Guizhou Province has been quoted at 160 yuan/ton with tax, and 28% has been quoted near 160 yuan/ton. The tax quotation of the main grade phosphate ore factory is around 330 yuan/ton, the tax quotation of the main 30% grade phosphate ore factory/car board is 350-430 yuan/ton, and the tax quotation of the main 30% grade phosphate ore factory in Hebei province is around 530 yuan/ton. The phosphate ore is affected by the output of the producing area, and the price difference between different regions is large.

Industry chain: Since the beginning of August, the price of yellow phosphorus, a downstream product of phosphorus ore, has continued to fall, and the price has been loosened again. As of August 8, the average price of yellow phosphorus quoted in the mainstream area is around 21500 yuan/ton, which is down about 500 yuan/ton, or 2.27% compared with August 1. Phosphoric acid products have been affected by raw material production since early July, and the market of phosphoric acid has remained stable all the way up to and after August 8.

Industry: According to the price monitoring of business associations, on August 7, 2019, there were 16 kinds of commodities rising in the 58 price rise-fall list, mainly in the agricultural and sideline sectors (4 kinds in total) and the non-ferrous sectors (4 kinds in total). The top three commodities were silver (1.99%), live pigs (1.76%) and eggs (1.65%). There were 22 kinds of commodities falling in ring ratio, mainly in nonferrous (4 kinds) and steel (4 kinds). The first three commodities falling were polyester POY (-2.67%), iron ore (Australia) (-2.63%) and WTI crude oil (-1.94%). The average daily rise and fall was 0%.

3. Future Market Forecast

Business association data analysts believe that the domestic phosphate ore market is expected to remain stable in the short term.