Phosphoric acid is produced by two general route - the thermal process and the wet process. Thermal process is more expensive but it produces a purer product; Wet-process phosphoric acid dominates in the commercial sector. The recent increase in the price of phosphoric acid, in addition to the rise in transport prices led to product prices, will there be other factors?
What is the difference between the thermal process and the wet process phosphoric acid?
The production cost of thermal process phosphoric acid is high, but very purity and high quality. According to its purity, it is divided into industrial grade, food grade, reagent grade and electron grade. Most of the industrial grade is used for the production of phosphates; the food grade is mainly used in pharmaceutical industry, sugar industry and the food industry. In addition to direct consumption in the food industry, most of them are used for the production of various food-grade phosphate; reagent grade is often used in analytical reagents; electronic grade is mainly used for semiconductor separation devices and plays a role of cleaning agents, etching agents as well as cleaning materials of LCD screen glass. The traditional wet-process phosphoric acid production process is the reaction of phosphate ores and inorganic acids. Due to its impurities and poor quality, it generally used more in fertilizer industry.
At present, the thermal process dominates high-end market of phosphorus chemical industry, and the wet process ones occupies the middle and low-end market of phosphorus chemical industry. With the development trends of Chinese phosphorus chemical, the demand for thermal process phosphoric acid will become larger. But if the production technology of wet-process phosphoric acid is improved and make it is suitable for the application of high-end products, that means the profit of wet-process ones will be greater. Of course, the position of thermal process phosphoric acid in the high-end product market is still very solid.
The FOB price of Phosphoric acid 85% food grade has increased gradually since February 2017. Now the price rose to USD850/MT in April. However, the price increase of raw material will inevitably lead to the price of downstream products. But when the price of downstream products increase, it also has to refer to the stock of raw materials of enterprises. If enterprises without sufficient inventory, it needs to consider whether the customer needs to be stocked. Latter OKCHEM still need to pay close attention to the trend of raw material prices and market supply and demand.