India merchant-grade phosphoric acid prices have increased for the third quarter, marking a significant recovery after previous phosphate fertiliser price gains. India’s quarterly settlement with JPMC rose by $340/t P2O5 from the second quarter to $1,700/t P2O5 CFR India, mainly reflecting higher sulphur costs. The increase indicates further upward pressure from the raw material side and reinforces the cost support for the phosphate sector.

The higher phosphoric acid settlement is expected to provide additional support for DAP and MAP prices in the coming months. While fertiliser markets have already seen growth in prices driven by firm sulphur prices and supply concerns, the delayed increase in merchant-grade acid prices represents a further adjustment along the value chain. Producers are likely to maintain firm price ideas as production costs continue to rise.

Market participants expect phosphate fertiliser prices to remain supported in the near term, although demand recovery from key importing markets will remain a key factor in determining the market direction.