Jordanian phosphoric acid producer and exporter JPMC has settled its fourth-quarter phosphoric acid contract with Indian importer Coromandel (CIL) at $1,700/t P2O5, with 30 days of credit, unchanged from the third quarter.

The rollover indicates that lower sulphur costs have yet to translate into lower contract prices. Although the market had anticipated some downward adjustment following the decline in sulphur prices during the third quarter, the latest settlement suggests that producers have so far maintained their pricing position. The outcome also highlights the role of contract negotiations in translating raw material cost changes into phosphoric acid prices. Meanwhile, lower liquid ammonia prices could ease cost pressures on Indian fertilizer producers, potentially improving their capacity to absorb phosphoric acid import costs. Against the backdrop of persistent tensions in the Middle East, continued uncertainty over regional supply and logistics, alongside volatile raw material costs, is likely to provide further support for phosphoric acid prices in the near term.