Is there a possibility of a price reduction in phosphoric acid after its continuous rise?

The recent continuous rise in phosphoric acid prices has attracted widespread market attention. As a crucial raw material for feed additives and key materials such as lithium iron phosphate, the price increase of phosphoric acid not only impacts the new energy sector but also the chemical industry. This price surge is driven by multiple factors, and the market trend is expected to continue upward.

Rising Raw Material Costs

The core reason for the rise in phosphoric acid prices is the continuous increase in upstream raw material costs. Since the fourth quarter of 2025, the prices of the main raw materials for phosphoric acid—98% monoammonium phosphate and ferrous sulfate—have increased by 8.5% and 3.1% respectively compared to the previous quarter, directly pushing up the production cost of phosphoric acid. Under this cost pressure, many manufacturers have stated that they will face further losses if they do not raise prices, and therefore are actively negotiating price increases with customers, with increases generally ranging from 1,500 to 3,000 yuan per ton.

Increased Demand

Strong demand in the downstream market provides support for the price increase. In the second half of 2025, the explosive growth in orders for new energy vehicles and energy storage has led to a significant increase in industry capacity utilization, with some companies even operating at full capacity. This has caused phosphoric acid prices to rebound by over 30% from their mid-year lows.

A slow upward trend is expected in the near term. With raw material prices remaining high and downstream demand still in its peak season, phosphoric acid prices are likely to continue their slow upward trend. However, a significant price increase is not anticipated. Our latest phosphoric acid production remains at low prices. If you have any needs, please contact us; we will provide maximum support in terms of pricing!