Drone-Grade MKP Market Weekly Report | Week 32, 2026
Week 32, 2026 (August 3–August 9)
1. Market Overview
This week, drone-grade mono potassium phosphate (MKP) prices experienced a moderate pullback, with market dynamics mainly driven by the balance between production costs and downstream demand.
On the upstream side, prices of key raw materials, including yellow phosphorus and phosphoric acid, remained relatively high, providing strong cost support for MKP production. On the supply side, manufacturers continued to operate at reduced production rates. On the demand side, customer purchases were mainly driven by essential demand and planned inventory replenishment.
2. Key Raw Material Market Analysis
1) Yellow Phosphorus Market
Price Range: RMB 26,500–27,000/tonAs a key raw material in the phosphorus chemical industry chain, yellow phosphorus has a significant impact on downstream phosphate products. During the high-water season, the cost advantage of electricity supply has gradually emerged, supporting stable yellow phosphorus production and supply.
Meanwhile, the significant price difference between wet-process phosphoric acid and thermal-process phosphoric acid continues to provide support for yellow phosphorus demand.
2) Phosphoric Acid Market
Price Range: RMB 8,200–8,800/tonPhosphoric acid is one of the key factors influencing the direct production cost of MKP. Supported by cost transmission effects and demand from the new energy sector, phosphoric acid prices are expected to have limited downside room in the short term.
3) Potassium Raw Material Market
According to Baichuan Yingfu data, the average market price of potassium chloride (KCl) was RMB 3,228/ton. Due to cautious downstream purchasing sentiment and high port inventories, upstream suppliers and traders showed stronger willingness to accelerate sales and improve cash flow. Some product prices have already approached the government-guided reserve price level.
The average market price of 48% liquid potassium hydroxide (KOH) was RMB 3,242/ton. Market supply remained sufficient, while strong production cost support limited further price reductions.
3. LuoBu Market Outlook
In the short term, affected by uncertainties surrounding the Strait of Hormuz, prices of major phosphate chemical products are expected to remain at relatively high levels, with limited room for further adjustment.
In the medium to long term, as supply chains gradually recover and market supply-demand conditions return to balance, elevated prices are expected to gradually move back toward a more reasonable range.
