China Food Grade Phosphoric Acid 85% Market Update: Thermal Acid Falls as Yellow Phosphorus Weakens

China's phosphoric acid market moved weaker during July 3-9, 2026. The main pressure came from a sharp decline in yellow phosphorus, softer traditional downstream demand and cautious spot buying. For overseas buyers, the week created a clearer split between thermal-process phosphoric acid, which followed raw-material costs lower, and wet-process purified phosphoric acid, which was partly supported by firm sulfur-related costs.

Thermal-process phosphoric acid showed the larger adjustment. Guangxi offers were around RMB 9,000/mt, down RMB 1,100/mt from the previous week, equal to about USD 1,324/mt using the working rate of USD 1 = RMB 6.8. Jiangsu thermal-process acid was around RMB 9,600/mt, down RMB 600/mt, or about USD 1,412/mt. Sichuan was around RMB 8,500/mt, down RMB 400/mt, or about USD 1,250/mt.

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Key Takeaways for Overseas Buyers

Yellow phosphorus prices fell by nearly RMB 2,000/mt during the week, weakening cost support for thermal-process phosphoric acid. By the end of the period, main producing areas in Yunnan, Guizhou and Sichuan were heard around RMB 25,500-25,700/mt, equivalent to approximately USD 3,750-3,779/mt.

Wet-process purified phosphoric acid was relatively more stable. Anhui wet-process purified acid was around RMB 10,500/mt, down RMB 500/mt, or about USD 1,544/mt. Jiangsu remained around RMB 13,200/mt, and Southwest China stayed around RMB 12,600/mt, equal to about USD 1,941/mt and USD 1,853/mt respectively.

Supply was not tight enough to reverse the weak tone. Weekly phosphoric acid output was estimated at 83,400 mt, with the comprehensive operating rate at 54.01%. Buyers continued to focus on immediate needs rather than building large inventories.

Market Drivers

The thermal-process market was pressured by both lower cost and weaker demand. As yellow phosphorus moved lower, buyers expected more room for negotiation and delayed non-urgent procurement. Producers and traders faced more pressure to close orders, especially in regions where spot demand was limited.

The wet-process market was supported by sulfur-related costs. Domestic sulfur prices were volatile during the week because of geopolitical uncertainty, with the market moving within a high range around RMB 8,800-8,900/mt. This kept cost support for wet-process purified acid relatively firm, although actual transaction prices still depended on customer, grade and delivery terms.

Demand was mixed. Traditional phosphate-related downstream sectors remained in a seasonal slow period, while some demand linked to new-energy materials offered partial support. This structure helped wet-process acid perform better than thermal-process acid, but it did not create a broad-based recovery across the whole phosphoric acid market.

Price Outlook

For the following week, thermal-process phosphoric acid in Jiangsu was expected to remain around RMB 9,000-9,600/mt, or about USD 1,324-1,412/mt. The market may continue to move toward the lower end if yellow phosphorus weakens further during the wet season and downstream buyers keep pressure on prices.

Southwest wet-process purified phosphoric acid delivered prices were expected to remain roughly around RMB 10,000-11,000/mt, equivalent to about USD 1,471-1,618/mt. However, lower-priced thermal-process acid may still influence negotiation sentiment, so firm offers should be confirmed case by case.

Buyer Considerations

Overseas buyers should avoid treating domestic China spot references as fixed export offers. Export pricing depends on grade, food-grade or industrial-grade specification, concentration, packing, order volume, documentation, port, freight and shipment window.

For procurement teams searching for a phosphoric acid supplier China, manufacturer, distributor or exporter, the key RFQ details should include concentration, grade requirement, packing such as drums or IBC, COA requirements, order quantity, destination port and target shipment date. Current market weakness may create negotiation opportunities, but final prices should be reconfirmed close to shipment.

FAQ

Why did China's phosphoric acid market weaken?

The main reason was the sharp decline in yellow phosphorus, which reduced cost support for thermal-process phosphoric acid. Demand from traditional downstream sectors also remained cautious.

Did wet-process purified phosphoric acid fall as much as thermal-process acid?

No. Wet-process purified phosphoric acid was more stable because sulfur-related costs remained high and volatile, giving producers stronger cost support.

What was the weekly operating rate for China's phosphoric acid industry?

The comprehensive operating rate was about 54.01% during July 3-9, 2026, with weekly output estimated at 83,400 mt.

What should importers include in a phosphoric acid RFQ?

Importers should provide grade, concentration, packing, quantity, destination port, COA requirements and shipment window so suppliers can prepare accurate export quotations.

Are the RMB and USD prices final export prices?

No. The figures are domestic market references. USD equivalents are calculated at USD 1 = RMB 6.8 and should be reconfirmed for current export offers.