Phosphoric acid is one of the most critical feedstocks in the global fertilizer industry, used in the production of DAP, MAP, and SSP. Changes in its price have a direct impact on downstream fertilizer markets. The Argus Phosphates report dated 26 June 2025 highlights several key developments influencing the global phosphoric acid market, including raw material inflation, regional logistics recovery, and active import demand from South Asia. This article examines recent pricing trends, tender activity, and import flows across China, India, and Bangladesh.
Global Prices Hold Steady
Phosphoric acid prices remained relatively stable in June. India’s CFR price for Q2 2025 was assessed at $1,153/ton (as P₂O₅), while Western Europe saw a wider range of $1,218–1,360/ton. Chinese export prices held firm, with industrial-grade PPA quoted at $990–1,065/ton FOB and food-grade PPA at $1,005–1,080/ton FOB.
This pricing stability came in spite of rising upstream costs — especially sulphur — which are expected to push prices higher in Q3. Market participants are watching this trend closely.
China: Demand for Phosphoric Acid Picks Up
In China, demand for phosphoric acid — particularly PPA — strengthened during the last week of June. This increase followed a decline in freight disruptions caused by regional tensions in the Middle East. Chinese producers are reporting healthy inquiries, and with limited short-term availability, prices are likely to remain supported.
India: High Phosphoric Acid Imports
India’s state-owned FACT has floated a tender for four 12,000-ton shipments of 46–53% phosphoric acid solution, with deliveries scheduled between late August and early November. While Q3 contract negotiations are still ongoing, expectations of a price increase are strong, driven by rising input costs.
India imported a total of 209,000 tons of phosphoric acid in June, with the supply sourced from:
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93,000t from Jordan
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46,000t from Morocco
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44,000t from China
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21,000t from Senegal
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18,000t from Tunisia
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12,000t from South Africa
Year-to-date imports (1.74mn tons) are below last year’s figure of 1.95mn tons, reflecting the impact of costlier production and tighter supply.
Bangladesh: Limited Offers in Recent Tender
Bangladesh’s BCIC issued a tender to procure 10,000 tons of 52–54% phosphoric acid, which received only a single offer in the range of $1,465–1,521/ton CFR. Additionally, two more tenders for 20,000 tons are expected to be launched soon, signaling strong demand but limited seller interest in the current high-price environment.
Outlook: Price Pressure Likely in Q3
While the global phosphoric acid market remained stable through June 2025, the outlook for Q3 is tilted toward upward price pressure. Key drivers include rising sulphur costs, limited exportable volumes from certain origins, and seasonal demand from northern hemisphere fertilizer producers. For market participants, close monitoring of India’s tender results and Chinese FOB levels will be essential for strategic purchasing decisions in the months ahead.
