China Food Grade Phosphoric Acid 85% Market Update: Cost Support Meets Cautious Demand

During the week of July 17-23, 2026, China phosphoric acid prices moved in a mixed pattern. Yellow phosphorus prices edged higher, giving thermal-process phosphoric acid firmer cost support, while wet-process purified acid prices remained broadly stable. At the same time, downstream buyers stayed cautious because some phosphate and battery-material markets were still under pressure.

Key Market Signals for Buyers

Thermal-process phosphoric acid showed clear regional divergence. Guangxi reference prices moved down to about RMB 8,800/mt, approximately USD 1,294/mt at the working rate of USD 1 = RMB 6.8. Jiangsu reference prices were around RMB 9,390/mt, approximately USD 1,381/mt, while Sichuan prices rose to around RMB 8,400/mt, approximately USD 1,235/mt, supported by higher yellow phosphorus costs and some maintenance-related supply limits.

Wet-process purified acid was steadier. Anhui prices were reported around RMB 9,500/mt, approximately USD 1,397/mt, Southwest China around RMB 12,600/mt, approximately USD 1,853/mt, and Jiangsu around RMB 13,200/mt, approximately USD 1,941/mt. These figures are market references only and should be reconfirmed before any shipment or RFQ decision.

Cost, Supply and Demand

Upstream cost pressure remained visible. Yellow phosphorus prices in Yunnan, Guizhou and Sichuan rose slightly, while sulfur at Zhenjiang Port was around RMB 9,170/mt, approximately USD 1,349/mt, and largely flat week on week. This combination kept the cost base for phosphoric acid relatively high.

Total phosphoric acid output was estimated at about 77,900 mt for the week, with an overall operating rate near 49.45%. Thermal-process acid output was around 32,600 mt, while wet-process purified acid output was around 45,400 mt. Some producers reduced operating rates or remained cautious on offers because demand recovery was uneven.

On the demand side, traditional phosphate consumption remained in the off-season, while iron phosphate demand was more tied to rigid restocking. Export buyers should pay attention to the price gap between thermal-process acid and wet-process purified acid, because this gap can influence quotation strategy and replacement demand in some applications.

Export Market Notes

Export offers for refined phosphoric acid from China softened despite firmer raw material costs. Food-grade 85% H3PO4 in 35 kg drums was referenced around USD 1,550-1,600/mt FOB, while IBC packing was referenced around USD 1,500/mt FOB. Industrial-grade refined acid indications were also under negotiation, reflecting cautious downstream demand and producer efforts to remain competitive.

For overseas buyers comparing China supplier, manufacturer, distributor or exporter options, the most practical step is to check product specification, packing, COA requirements, destination port and shipment window together. You can review our phosphoric acid 85% product page for basic product information before sending an RFQ.

Short-Term Outlook

For the coming period, Jiangsu thermal-process phosphoric acid may stay near RMB 8,500-8,800/mt, approximately USD 1,250-1,294/mt, if demand remains cautious. Southwest wet-process purified acid may be discussed around RMB 10,000-10,500/mt, approximately USD 1,471-1,544/mt, depending on producer inventory, operating rates and downstream restocking.

The market is not one-sided. Yellow phosphorus still provides a visible cost floor, but downstream demand is not strong enough to support broad price increases. Buyers planning August shipment should reconfirm current offers close to order placement, especially for food-grade 85% acid, IBC packing, drum packing and COA requirements.

FAQ

Is China phosphoric acid price rising or falling now?

The market is mixed. Some thermal-process acid prices in Guangxi and Jiangsu moved lower, while Sichuan prices increased due to cost and supply factors. Wet-process purified acid was mostly stable during July 17-23, 2026.

Why did Sichuan thermal-process acid rise while other regions weakened?

Sichuan was supported by firmer yellow phosphorus costs, summer maintenance and some pending orders. In South and East China, higher operating rates and weaker new orders created more pressure.

What information should buyers provide for a phosphoric acid RFQ?

Buyers should provide grade, H3PO4 content, food-grade or industrial-grade requirement, packing type, order quantity, destination port, shipment schedule and COA or documentation needs.

Which packing is common for food-grade 85% H3PO4 exports?

Common export packing includes 35 kg drums and IBC tanks. Final packing should be confirmed according to buyer storage conditions, destination regulations and shipment plan.

Should buyers wait for lower prices?

There may still be room for negotiated prices in some regions, but raw material costs remain relatively firm. Buyers with near-term shipment needs should compare current offers rather than relying only on a general market direction.