Phosphorus acid prices witnessed a bearish outlook in the month of November 2024 in USA market. The prices declined amid declined demand from the key downstream sectors such as agrochemical sector in the production of fertilizers. The prices were influenced by various other factors such as change in the season, change in the government and anticipated change in government regulations.

In December, the prices of Phosphorus acid are expected to decline further amid no significant improvement in demand fundamentals. The prices are expected to decline notably in the USA market. The production of fertilizers remained weak in the market. The imports of fertilizers from China witnessed a surge in the previous month amid low prices. The market demand for fertilizers is expected to be limited for the next three months in the North American region. The surge in the procurement may lead to excess inventories and may lead to downward pressure on the prices. The harvesting season in USA is expected to be over which may lead to declined demand from the fertilizer production sector.

As the holiday season in approaching in USA due to Christmas and New year, the production activities are also expected to decline while demand for Phosphorus acid remain low leading to decline in prices of Phosphorus acid in the market. On the supply side, the prices of feedstock Phosphorus trichloride continued to witness downward trend reflecting the bearish market sentiment. As the feedstock prices declined, the production cost is also expected to decline which may weigh down the prices in December 2024. As the production cost in the exporting market that is, China is expected to decline Phosphorus acid prices may also follow the same trend.

While the market conditions indicate towards bearish sentiment weighing the price trend, the changes in government regulations and the expected increase in tariffs on Chinese imports may put upward pressure on the prices. The changes in government regulations may change the market dynamics and may lead to declining imports of Phosphorus acid and other chemicals from China. As demand is expected to remain bearish, the increased tariffs may have less impact on the overall prices in the USA market. The decline in demand and other factors may lead to declined prices of Phosphorus acid in December 2024.

Overall looking further, the Phosphorus acid market is expected to remain bearish in December unless the demand dynamics improve or changes in trade flow is observed. The Phosphorus acid demand is expected to decline further. The prices may witness upward trend amid supply disruptions or other significant changes in the market.