China's Purified Phosphoric Acid Market Comes Under Renewed Price Pressure
Prices in China's purified wet-process phosphoric acid market have started to move lower after the cost-driven rise seen in the first half of 2026. Falling sulfur and yellow phosphorus prices are changing the cost picture, while downstream buyers remain cautious.
According to a BAIINFO market update published on July 7, the mainstream average ex-works transaction price for 85% industrial-grade purified wet-process phosphoric acid was around USD 1,501 per metric ton. This was USD 118/t, or 7.28%, below the earlier high of USD 1,619/t.
More recent market feedback indicates that prices have continued to soften. As of July 10, yellow phosphorus delivered to western Sichuan was reported at around USD 3,778/t. For purified phosphoric acid, some actual transactions were reported near USD 1,407/t, depending on contract terms and purchase volume. These figures may differ from published market averages.
Sulfur prices have fallen from their earlier highs
Sulfur prices rose sharply during the first half of the year amid geopolitical uncertainty, shipping disruption and tight port supply. This pushed up the production cost of purified wet-process phosphoric acid.
BAIINFO data showed mainstream granular sulfur at Yangtze River ports reaching USD 1,719/t. By July 7, the price had fallen to around USD 1,304/t, down USD 415/t or 24.13% from the high.
The cost impact is not immediate for every producer, as some plants are still using sulfur purchased at higher prices. Even so, the earlier cost support for phosphoric acid is gradually weakening as lower-priced feedstock moves into production.
Lower yellow phosphorus prices are also affecting the market
Yellow phosphorus, the main raw material for thermal-process phosphoric acid, has also dropped quickly. The average acceptance price reported by BAIINFO fell from USD 5,069/t in mid-June to around USD 3,874/t on July 7, a decline of USD 1,195/t or 23.58%.
Market feedback put yellow phosphorus delivered to western Sichuan at about USD 3,778/t on July 10, suggesting that the market was still looking for a stable level.
At the same time, the domestic average price of thermal-process phosphoric acid fell from a previous high of USD 1,615/t to about USD 1,281/t on July 7. Its lower price has made it more competitive in applications where buyers can use either thermal-process or purified wet-process acid. This has added pressure to purified phosphoric acid orders and transaction prices.
Buyers are keeping inventories low
Demand from new-energy applications remains relatively steady, although additional purchasing is limited. Traditional downstream users are in a seasonally slower period and are generally buying only what they need.
With buyers still expecting lower raw-material prices, many prefer to delay restocking or negotiate shorter pricing periods. This helps explain why actual contract prices can be lower than public offers. The reported USD 1,407/t transaction level shows that purified phosphoric acid prices are also under pressure.
What to watch next
In the near term, attention will remain on whether yellow phosphorus can stabilize around USD 3,704-3,852/t, the price gap between thermal-process and purified wet-process phosphoric acid, and purchasing activity from new-energy customers. Prices may continue to vary by producer, region, order size and delivery terms.
Data note: All USD prices are converted at USD 1 = RMB 6.75 and rounded to the nearest dollar. Figures through July 7 are taken from the referenced BAIINFO market update. The July 10 yellow phosphorus and purified phosphoric acid prices are based on market channel feedback and should not be read as uniform nationwide quotations.