Tepid feedstock Phosphorous oscillating the Phosphorous Trichloride sentiments in the Asian market

In India, the prices of Phosphorous Trichloride remained stable after a dip on 14th January. The prices were observed to be USD 1998/ton Ex-Vapi and USD 2051/ton Ex-Mumbai when observed on 8th April. In China, the price of 30% grade Phosphorous hovered around USD 120/ton, compared with the prices on 1st April, where the cost was USD 116.23/ton, with a surge of 3.24%.

Indian Phosphorous trichloride market was tepid with a slight increase in feedstock Yellow phosphorous prices. It was heard that the feedstock shipments were halted at the Chinese ports. Port congestion and limited vessel availability resulted in such a trend. The prices have been increasing with a minute deflection in the past few weeks.

However, downstream Fertilizer industries are vital in the domestic market. The downstream Fertilizer market remained on the upper end with supply constraints and rising demand from the farmers end. Rising tension between Russia and Ukraine pushes annual fertilizer subsidies up to USD 2 trillion in the current financial year. After the Qingming festival in April, the supply was tight, and the spring ploughing season and peaked demand further boosted the downstream fertilizer market. The yellow phosphorous market was heard to be operating stably, and the prices were USD 5772/ton on 6th April and have been firm since the start of the month.

According to ChemAnalyst, the prices of Phosphorous Trichloride in the Asian region are expected to remain stable in the upcoming weeks due to steady demand and utilization of existing inventories among the enterprises. However, downstream Fertilizer enterprises are expected to grow this month as the ploughing season will more likely to increase the utilization of Phosphorous ore in the market. Also, on 7th April, the Chinese Ministry of Industry and Information Technology, in association with other administrations, issued a joint document to strictly control the new capacity of Yellow phosphorous, and it is expected that it can impact the prices of Phosphorous Trichloride.